M.O.D Pension Injustice

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There will be more developments in this case soon.

Major Richard Perkins (Retired)

“Having, after a 5-year struggle against bureaucracy, been awarded full income tax rebate on that part of my Service pension of which I have been illegally deprived for 42 years, I have for the last 3½ years been fighting for the corresponding recompense for the deprived usage by me of that income for over 4 decades.  Such recompense was intended and authorised by the Minister concerned, Mr Doug Henderson MP, before Parliament on 8 June 1999. 

“It is unquestionable that for those 42 years I was illegally deprived of part of my salary, and though his civil servants have persuaded the present Veterans’ Minister that whatever happened in 1959, it was not the MoD’s fault,  but was mine, because I had not appealed at that time. That was and remains now an absurd contention (as made clear by John Greenway in his letter to the current Veterans Minister) and the MoD Misunderstanding paper  

“It is the present long-drawn inconclusive wrangle that has forced the need for the accompanying ‘Open Letter to the Minister’ on behalf of all such possible claimants.” Major Richard Perkins, July 2007

Calendar of events highlights the injustices of the MoD by the delays in repaying the tax unequivocally owed to Major Perkins


Nov 14

Major Perkins will feature in BBC North Politics Show on Sunday 14 November
If you are not in the BBC Yorkshire region, follow the link to watch it online on Sunday at 3.30pm
Watch it live
Nov 2010 Major Perkins new open letter
"Justice delayed is justice denied"
Read the full document here
May 2008 BBC Politics Show features Richards case, watch it here 'Soldiering On'  
April 2008

Richard will soon be celebrating his 90th birthday and is still campaigning to be treated the same as the other pensioners - now numbering over 1600 from the original 198. In a recent letter from Derek Twigg to John Greenway MP, it was stated that HMRC "paid a 'Repayment Supplement' - statutory interest which is limited to the last six years of refund." However in a written statement to Parlimant in 2003 about other claimants, Ivor Caplin staed "The Inland Revenue allowed a significant concession in waiving the time limits that normally apply in refunds of tax"
The 2002 SPVA medical which was used to deny him access to full recompense following his successful PATs appeal was conducted over the telephone!

Read the full Hansard statement
Major John Perry, who started the campaign for the pensions to be corrected got his refund in 2002.
Under the 1952 Income and Corporation Taxes Act pensions were made tax free if they were granted on account of medical unfitness "attributable" to naval, military or air force service, this affected over 1000 service personnel. If the mistake had not been made, many families would not have suffered financial hardship for the years leading up to this.
Read the full BBC story
Jan 21 2008
"It is incontrovertible that for 42 years I have lived on half pay. As an ex-major, of exactly  £479.74, my £438 rent leaves me  £41.74 to live on per month  plus my OAP propped up by a bit of Housing benefit and any Charity I can get.
Not very dignified !" Major Richard Perkins
Jan 21 2008

War veterans told to pay back their pensions after MoD bungle

Shocked war veterans have been told they must hand back £1.7 million of their pensions after the Ministry of Defence admitted they had been overpaid. Officials confessed that almost 100 armed forces veterans had received pension overpayments every month due to a bureaucratic error.
The former servicemen have been told they must repay the figure - an average of £17,000 each, according to the Daily Mirror. The MoD, which has written to all affected servicemen, said it would not require them to repay the money but is asking the Treasury to write it off.
An MoD spokesman added today: "The MoD is bound by government accounting rules to correct any errors in payment, but has not requested any money to be reimbursed by the individuals concerned."
Major Perkins is still waiting for his pension to be paid correctly. The Government accounting rules applying to 'errors in payment ' are also relevant in his case, yet the MoD & Derek Twigg refuse to accept this. [editor]

Read the full article in The Daily Mail

BBC article

Daily Telegraph
November 2007
Major Perkins wrote to Derek Twigg in September as a response to Mrs Geekie's letter. This letter has 8 indictments against the MoD.
Read the letter
6 November 2007
Read this moving article by Mick Smith [Investigative journalist Michael Smith is the British Press Awards specialist writer of the year. He writes on defence and intelligence for The Sunday Times and has broken many exclusives, not least the Downing Street Memos]. "The Cheap and Tawdry way our Veterans are treated"
Read the Times article
23 August 2007
Letter from Mrs Geekie MoD about the PAT appeal in 1999.
"......following the decision of the Pension Appeals Tribunal, the appropriate
procedures were followed to ensure that you Armed Forces pension was taxed in accordance with HM Revenue & Customs Legislation".
Woolly - no indication of which piece of legislation she means.

However, the PAT decison found that the disability on the discharge notice WAS attributable to service and as such the pension should be TAX FREE from the date of discharge and not the date of appeal.
Read Mrs Geekies' letter
10 Jan 2007
John Greenway MP wrote to Derek Twigg making reference to Government Accounting Rules which appear to be directly relevant to the case. Yet have been ignored by Ministers and their advisors in the MoD
18.1.3 reply to a reasonable question
18.7.19 financial suffering from delay
18.7.6 consistency and being fair
18.7.10 failure to put in place suitable guidance
18.7.24 hardship - result causing a substantial deterioration in standards of living
He also refers to PAT ruling which the MoD have ignored, he raises many other valid questions. He has had a reply, however none of the questions have been answered.
Read the letter and the unanswered questions
1 April 2004
Phil Woolas, speaking in the House of Commons
The hon. Member for Ryedale (Mr. Greenway) raised four issues on behalf of his constituents. I shall begin with the most important—the case of Major Richard Perkins, his constituent. I am advised that the Ministry of Defence is trying to resolve the tax status, following the decision by the Veterans Agency to award him his war disablement pension. I am also advised that the case is not straightforward. The MOD is preparing a submission to the Inland Revenue, which is responsible for the final decision. The MOD acknowledges that it has taken some time to resolve the matter and apologises for the inconvenience that that has caused. I ask the hon. Gentleman to pass that on to his constituent, whom all of us would want to help. An 86-year-old ex-soldier deserves our support.
Link to the debate
Dec 2002
Lewis Moonie, the veterans minister who ordered the internal inquiry, told the Commons. "I much regret that in several of the cases recently re-examined a pensioner, previously misadvised that his pension was correctly taxed, has died before an error was recognised," he said "In such cases the tax refund is to be paid, with due apology, to the pensioner's widow or estate." The "important omissions" uncovered by the inquiry meant that the review was likely to take until next summer, but priority was being given to reviewing cases where the serviceman or woman affected was elderly. "We are very much aware of the importance of giving as much priority as possible to examining the cases of our oldest pensioners," said Dr Moonie.
Read the Daily Telegraph article
Nov 2002
n a letter from Lewis Moonie, the Parliamentary under-secretary of state at the MoD, Major Perkins was told the Veterans' Agency had not awarded him a gratuity or pension on the basis of his disability because he was "not suffering any assessable degree of disablement".
See Discharge letter
See Tribunal descision
July 2002 Dr Moonie apologised for the "deeply regretted" error in wrongly taxing these pensioners & "that the matter will be dealt with as quickly as possible"  
Feb 2002
Daily Telegraph - MoD cannot backdate the tax without authority from the Inland Revenue, which has said it cannot do anything without MoD authority.
Link to newspaper article
23 January 2002
Dr Lewis Moonie, speaking in the House of Commons
Arrangements have been made for Major Perkins to receive a refund of tax paid since 25 August 1999, but that was not backdated to the date of his retirement. I am looking closely at this issue at present, and I can assure him and his Member of Parliament, the hon. Member for Ryedale (Mr. Greenway), that the matter will be dealt with as quickly as possible
Link to the Commons debate
August 2001
The Pensions Appeal Tribunal, an independent body, ruled in August that his pension should have been attributable and therefore tax-free.
However the MoD only repaid tax for the 2 preceding years
See Tribunal descision

8 June 1999


Mr. Doug Henderson: The MOD is working closely with the Inland Revenue on the repayment of tax for the 179 Army pensioners identified as having had tax incorrectly deducted from their invalidity pension. The affected pensioners will all receive a full refund of the tax wrongly paid since their discharge, together with a repayment supplement reflecting the interest which might have been accrued on the amount of tax wrongly paid.

Link to Hansard for the full written statement

MOD stated Richard Perkins not eligible as his discharge was not due to disability

Process started to reclaim lost tax  
1998 Letter from APC advising tax wrongly levied  
28 February 1959 Discharged from the Army on account of disability See Discharge letter

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