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Soldiers to get 'tax bill' bonus Soldiers to get 'tax bill' bonus
(about 6 hours later)
UK forces serving in Afghanistan and Iraq are to receive cash bonuses to pay off their tax bill, Defence Secretary Des Browne is set to announce. UK forces in Afghanistan, Iraq and the Balkans will receive cash bonuses to pay off their tax bill, Defence Secretary Des Browne has announced.
BBC Political Editor Nick Robinson says it follows a campaign to stop soldiers paying tax on their earnings - something that American GIs do not do. They £60m scheme would ensure everyone on dangerous operations for six months or more would be better off, he added.
Tony Blair said: "It's something that's obviously important because of the work that the troops are doing." Mr Browne told MPs the £2,240 bonus would be backdated to April this year.
Mr Browne is set to make the announcement later in the Commons. He said UK forces were "some of the best paid in the world" but that in many countries active troops did not pay taxes and the UK would follow suit.
'£500 better off'
The bonus represents almost £100 a week over six months.
Mr Browne said the lowest-paid personnel - privates and corporals - would be £500 better off than had their tax simply been returned.
HAVE YOUR SAY Why not just pay the guys more in the first place which they fully deserve? Peter, Calne Send us your comments
It has already emerged that British troops wounded while fighting in Afghanistan and Iraq will receive an extra allowance of £10 a day while they are in overseas hospitals.
Chancellor Gordon Brown had freed up £60m, so the money would not come from operational budgets, he added.
Shadow Foreign Secretary Liam Fox welcomed the announcement of the bonus, saying of the troops: "They deserve it."
The decision follows a campaign to stop soldiers paying tax on their earnings - something that American GIs do not do.
Earlier, Tony Blair said: "It's something that's obviously important because of the work that the troops are doing."
'Long overdue''Long overdue'
The prime minister told the BBC the payment was in recognition of the fact that British troops were going through a completely different experience to soldiers on the battlefield years ago.The prime minister told the BBC the payment was in recognition of the fact that British troops were going through a completely different experience to soldiers on the battlefield years ago.
The amount will be paid to anyone serving in what is called a hazardous operational area, like Iraq, Afghanistan and the Balkans. That currently covers around 15,000 serving troops. The amount will be paid to anyone serving in what is called a hazardous operational area - currently about 15,000 troops.
I think everybody will be extremely pleased General Patrick Cordingley General Patrick Cordingley, who commanded the desert rats in the first Gulf War against Iraq, said the decision was long overdue.
General Patrick Cordingley, who commanded the desert rats in the first Gulf War against Iraq, says the decision is long overdue. He said: "In the past I've always thought that this tax business when you're abroad on active service doesn't seem to make any sense.
"I think everybody will be extremely pleased," he said. "And in some instances they actually lose various allowances when they go to another theatre."
"In the past I've always thought that this tax business when you're abroad on active service doesn't seem to make any sense.
"And in some instances they actually lose various allowances when they go to another theatre.
"For instance if they get overseas allowance for being in Germany they lose half of that because they're no longer in Germany.
"So in fact soldiers, particularly in the first Gulf War, lost money for going to fight for their country."
Travel expenses
Mr Blair ordered a review of the complete support package available to armed forces personnel several weeks ago.Mr Blair ordered a review of the complete support package available to armed forces personnel several weeks ago.
HAVE YOUR SAY Why not just pay the guys more in the first place which they fully deserve? Peter, Calne Send us your comments It has already emerged that British troops wounded while fighting in Afghanistan and Iraq will receive an extra allowance of £10 a day while they are in overseas' hospitals.
At-sea bonuses and separation allowances will also be extended to cover servicemen and women who are in hospital.At-sea bonuses and separation allowances will also be extended to cover servicemen and women who are in hospital.
Troops are also set to benefit from additional travel expenses for families visiting them in hospital, free delivering of postal parcels over the Christmas period and improved access to broadband internet connections. Troops are also set to benefit from additional travel expenses for families visiting them in hospital, free delivery of postal parcels over the Christmas period and improved access to broadband internet connections.
Conservative leader David Cameron used his party conference speech to stress that he believed more should be done for servicemen and women who pay income tax while fighting overseas.