There are certain times during your Service when you may become entitled to extra pay or allowances on top of your basic pay.
This extra money could be
- payments to help you take extra courses or gain extra skills – see Learning credits
- a bonus because you have served a certain length of time – see Commitment bonus
- specialist pay because you have gained and are required to use certain skills – see Recruitment and retention pay
- an incentive to ensure that the Armed Forces do not lose personnel qualified in key roles – see Financial retention incentive
- an allowance due to your specific circumstances to ensure that you are not financially disadvantaged due to your Service commitments – see Expenses and allowances
Financial Incentives, Recruitment and Retention Payments, Commitment Bonuses, Golden Hellos etc are all taxable through PAYE. These payments therefore contribute towards your taxable earnings and could potentially push you over the eligibility threshold for claiming benefits and tax credits.
Whatever extra money you get use it wisely - think about whether you want to put it towards saving for your own home, to buy a car or to invest in your future - see the Managing money section for more information.