Road, TV tax to end, COLA survey used to offset reimbursements

  • Published
  • By Staff Sgt. Brian Stives
  • 501st Combat Support Wing Public Affairs
RAF ALCONBURY, United Kingdom --  Beginning in March, the unique COLA entitlements for the road tax and television licensing reimbursement to service members stationed in the U.K. will no longer be provided.

"Defense Travel Management Office concluded that the U.K., as a whole, didn't meet the Joint Federal Travel Regulations criteria, since the reimbursed road tax for the 2011 fiscal year averaged $322 and the reimbursed television tax for the 2011 fiscal year averaged $243," said Master Sgt. Patrick Curtis, 501st CSW financial services officer." Both of these, individually, must not be lower than one percent of the Spendable Income for the 2011 fiscal year, which was $336."

Since service members will no longer be directly reimbursed for these expenses, it's important that they identify and include these payments as part of their annual expenses while stationed here for the purposes of the COLA survey -- even if they were already reimbursed this year. In the "Remarks" section of Part VI of the survey, service members can write in the amounts they pay for their total annual road tax costs (for all of their vehicles) and television license.

This survey, which is available until Feb. 15, is a service members' only opportunity to report their expenses so the COLA they receive is an accurate reimbursement for unique expenses and off-base spending in the United Kingdom. The results of this survey will directly affect the amount of COLA service members receive while stationed overseas.

"This survey is vital in determining our COLA rate, which helps supplement all of the extra costs and fees of goods and services we have in overseas locations," said Lt. Col. Richard Steggerda, 501st Combat Support Wing comptroller. "Maximum participation of uniformed members is highly encouraged."

COLA, is a non-taxable allowance designed to offset the higher overseas prices of non-housing goods and services. It is intended to equalize purchasing power so service members can purchase the same level of goods and services overseas as they could if they were stationed in the continental United States. It is calculated by comparing the prices of goods and services overseas with average prices for equivalent goods and services in CONUS. The result of this comparison is an index reflecting a cost of living.

Before service members begin the survey, which takes approximately 30 minutes to complete, they should determine where they purchase their groceries, clothing, household furnishings, entertainment, communication devices and transportation, and how much they typically spend on these items annually.

To show how the COLA changes throughout the U.K., an E-5 with 10 years in service and two dependents currently earns around $630 per month at RAF Alconbury, $680 per month at RAF Menwith Hill, $685 per month at RAF Lakenheath/Mildenhall, and $1,000 per month at RAF Croughton in COLA.

To access the survey, click here.

Below are some helpful questions and answers for military members to reference. Anyone with additional questions should call their local finance office.

Q: Will there be an increase in pay to cover the road tax and television license costs?
A: No. The only amount that may be adjusted due to this change is the COLA, but that is dependent upon the COLA survey results.

Q: What happens if I don't pay the road tax or purchase a TV license?
A: It is illegal to operate a vehicle that doesn't have a valid road tax disc. Drivers of vehicles without a valid road tax disc can be fined up to £2,000, issued a ticket, sent to court and/or their car can be impounded or crushed. Additionally, people can be fined if they purchase their road tax late. If a home contains a device that emits a signal and is capable of receiving/streaming media, and the occupant has not purchased a television license, the occupant can be fined up to £1,000.

Q: Do Airmen who live in the dorms and in base housing have to purchase a television license?
A: Yes. According to the television licensing website, a television license is required if you watch or record programs that are broadcast from outside the U.K. on a non-U.K. satellite (i.e. an AFN dish).

Q: Does the television license only apply to actual televisions, or does it include devices that emit a signal and are capable of receiving/streaming media?
A: According to the television licensing website, a television license must be purchased if a person watches live television on a television or online on a computer or laptop, or if a person has a video recorder and/or a digital recorder, or if a person uses a cell phone that can broadcast television.

Q: Can Airmen pay for their road tax or television license early, before Feb. 28, 2013, so they can file to receive the reimbursement before it ends?
A: No. For example, if an Airman's road tax or television license expires at the end of June 2013, that Airman must renew his/her road tax or television license in June 2013.

Q: In the future, will the reimbursements be reinstated?
A: Currently, there are no talks for the reimbursement being reinstated.

To purchase a television license, or for more information, visit www.tvlicensing.co.uk.

To purchase road tax for a vehicle visit https://www.taxdisc.direct.gov.uk/EvlPortalApp/app/home/intro?skin=directgov.

For more information on the road tax visit https://www.gov.uk/browse/driving/car-tax-discs.