With the recent media debate over what constitutes a ‘working person’, we would argue that all serving members of the Armed Forces, whether regular or reserve meet the criteria laid out by the Government. The final payslip a member of the Armed Forces receives in future could include a significant tax penalty if the Government reduces the Lump Sum Allowance (LSA).
On 11 October, a full 19 days before the Budget, our Chief Executive wrote this letter to the Chief Secretary to the Treasury:
We repeat, once again: if the Government choose to reduce the LSA, this would constitute a direct breach of the Armed Forces Covenant, entered into knowingly by them. The potential impacts highlighted in our communications to the Government should therefore not come as a surprise.
We await the Chancellor’s Budget Statement on 30 October and will respond accordingly.
Read our previous news on this subject here.
