The government has laid two sets of regulations giving effect to the income tax exemption and Class 1 NICs disregard for the new accommodation allowances paid to armed forces personnel for renting or maintaining accommodation in the private market, under the MOD’s ‘future accommodation model’.
The government announced this change at Autumn Budget 2017, introducing legislation in Finance Bill 2018 to take effect once the MOD had finalised the detail of its plans for the future accommodation model. The model is to be piloted in a handful of locations from September 2019.
The Income Tax (Accommodation Allowances of Armed Forces) Regulations, SI 2019/1007, specify the following types of payments are to be included in the definition of ‘accommodation allowance’:
The Social Security (Contributions) (Amendment No 2) Regulations, SI 2019/1009, provide for the corresponding NICs disregard.
Both sets of regulations come into force on 2 July 2019.
The government has laid two sets of regulations giving effect to the income tax exemption and Class 1 NICs disregard for the new accommodation allowances paid to armed forces personnel for renting or maintaining accommodation in the private market, under the MOD’s ‘future accommodation model’.
The government announced this change at Autumn Budget 2017, introducing legislation in Finance Bill 2018 to take effect once the MOD had finalised the detail of its plans for the future accommodation model. The model is to be piloted in a handful of locations from September 2019.
The Income Tax (Accommodation Allowances of Armed Forces) Regulations, SI 2019/1007, specify the following types of payments are to be included in the definition of ‘accommodation allowance’:
The Social Security (Contributions) (Amendment No 2) Regulations, SI 2019/1009, provide for the corresponding NICs disregard.
Both sets of regulations come into force on 2 July 2019.