Officers advanced school - accounts pay and allowances



Officers advanced school - accounts pay and allowances


Covers officers' rates, joining certificates, methods of payment, advances, officers' outfits, officers' allowances, single officer, qualified married officer, unqualified married officer, married officer, allowances individually, when claimed, method of payment, married and birth certificates, travelling claims, airmen's accounts, airmen on posting, airmen rates of pay, advances, stoppages forfeitures, pay other than substantive, unemployment and national health insurance, family allowance, dependents' allowance, voluntary allotments, post war credits, war service grants and petrol rationing. Appendix covers income tax examples and questions.



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PAY AND ALLOWANCES [/underlined]
References: K.R. & A.C.I.
A.P. 837
A.M.Os as quoted hereunder.
[underlined] Officers’ Rates [/underlined]
1. Officers’ rates of pay are shown in para. 3419, K.R. The increments shown in this paragraph are available after paid service in any rank, acting temporary, war substantive or substantive.
[underlined] Joining Certificates [/underlined]
2. Forms 1443. Importance of rendering promptly together with claim for married rates of allowances when applicable. (A.M.O. A.129/45).
[underlined] Methods of Payment [/underlined]
3. Officers draw pay monthly in arrears through the R.A.F. agents. Officers are allotted to agents according to their surnames. (K.R. 2776).
[underlined] Advances [/underlined]
4. (a) Officers during first month of commissioned service may obtain advance up to £10.
(b) On posting overseas.
[underlined] Officers’ Outfits [/underlined]
5. (a) When posted overseas (A.M.O. A.190/43, A.363/43).
(b) On commissioning (A.M.O. A.422/43, A.423/43, A.1036/43)
(c) Camp kit (A.M.O. A.537/43)
(d) Separation from Kit Allowance (A.M.O.s 282/42, 1192/42, 81/43).
[underlined] Officers’ Allowances [/underlined]
6. A.M.O. A.710/43 and its amendments A.1199/43 and A.1219/43 are a complete codification of the subject. These A.M.Os also serve as an index to all A.M.Os on allowance still in existence.
Allowance computations are now so simplified that a consolidated figure is used for almost any set of circumstances; this consolidated figure is obtained from appendices “A” and “B” of the A.M.O. The index to other A.M.Os in Appendix “A” permits an easy method of reconciliation between the old individual allowances and the new consolidated figure.
A further simplification has been effected, in that on these new scales no adjustment in rates is made between the seasons of the year.
[underlined] Single Officer [/underlined]
7. (a) Living in mess he will get no allowance except when on leave when he will get leave rate ration allowance, at present 3/4d per day.
(b) If billetted, [sic] he will get 3/- a day billeting allowance (2/- if more than one officer), a servant allowance of 2/- a day and a higher rate of ration allowance, at present 2/10d a day if appropriate.
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(c) In exceptional circumstance and with permission of A.O.C. when billeting is not practicable he may be placed on single lodging list and draw:- Lodging, fuel and light allowances at single rates, servant allowance, and H.R.R.A.
[underlined] Qualified Married Officer [/underlined]
8. (a) An officer over 30 or holding a peace or war substantive rank about flight lieutenant, commissioned before 1st Jan., 1942, and who elected to remain on the old rates in accordance with A.M.O. A.1112/42.
(b) He may be said to have a certain right to live out with his wife and when no married quarters are available he may live out and is paid:-
(i) Lodging allowance at married rates – K.R. 3259
(ii) Furniture allowance of 2/- a day – K.R. 3270
(iii) Fuel and light allowance – A.M.O. N.775/43
(iv) Higher rate ration allowance.
(v) Servant allowance, K.R. 3302/3304.
(c) If separated from his wife for service reasons he is paid a consolidated allowance applicable to Q.M.O. – P.O. and F.O…………… 7/6; F.L. and S.L. …… 8/6; W.C. and G.C. …… 9/6d; Air rank ………11/- a day.
[underlined] Unqualified Married Officer (now extremely rare) [/underlined]
9. (a) An officer commissioned prior to 1st Jan 1942, not a qualified married officer who has elected to remain on the old rates under A.M.O. A.1112/42.
(b) If separated from his wife he will be paid a consolidated allowance as follows:-
Wife only ……… 3/- a day
Wife and child ……… 4/6 a day
Wife and 2 children …….. 5/6 a day
(c) If given permission to live out he will be paid:-
(i) Lower rate ration allowance
(ii) Separate fuel and light allowance
(iii) Consolidated allowance as above
(iv) Servant allowance, 2/- per day.
[underlined] Married Officer [/underlined]
10. (a) All officers commissioned on or after 1st Jan., 1942, or any officer commissioned before that date who elected to draw the new rates under A.M.O. A.1112/42. (See also A.911/41 and A.1162/42, A.591/44).
(b) If separated from wife, he will be paid consolidated allowance as follows:-
[heading] [underlined] P.O. and F.O. – F.L. – S.L. and above [/underlined] [/heading]
Wife only – 4/- - 4/- - 4/-
Wife and child – 8/6 – 7/6 – 6/-
All subsequent children 2/- per head.
(c) If given permission to live out he will be paid:-
(i) Consolidated allowance, plus 1/- a day
(ii) Servant allowance
(iii) Higher Rate Ration Allowance
(d) Pre-Natal Allowance – Not applicable to A.M.O’s
Applied to children born on or after 1st May, 1944
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Allowance paid direct to wife as follows:-
[heading] [underlined] P.O. and F.O. – F.L. – S.L. and above [/underlined] [/heading]
1st Child - £20:9:6 - £15:18:6 - £9:2:0
All subsequent children £9:2:0 per head.
[underlined] Allowances Individually [/underlined]
(a) Lodging Allowance – K.R. 3258/3261
A.M.Os A.134/40, A.186/40, A.328/40, A.679/40, A.1162/42, A.363/43.
(b) Furniture allowance – K.R. 3270 – 2/- per day.
(c) Fuel and light allowance – K.R. 3274/3278, A.M.O. N.977/44
(i) Combined rates
(ii) Single rates
(iii) Separate rates
(d) Servant allowance – K.R. 3302/3304
A.M.Os A.186/40, A.679/40, A.944/40, A.912/41, A.322/43.
(e) Colonial allowance – K.R. 3316, A.M.O. A.530/39, A.239/44.
(f) Ration Allowance – A.M.Os N.289/44, N.450/44
(i) Leave rate
(ii) Higher rate
(iii) Lower rate
(g) Field allowance:-
(i) P.O. and F.O. ………. 2/-
(ii) F.L. ……………………. 3/-
(iii) S.L. and above ……. 3/6d
(iv) Field allowance areas ….. A.M.O. A.1070/43, A.240/44
[underlined] When Claimed [/underlined]
12. (a) Form 840 must be used to claim marriage allowances and must be rendered:-
(i) On 1st January and 1st July each year
(ii) Whenever posted
(iii) On marriage
(iv) When first commissioned.
(b) Form 1771 is used for claiming travelling allowance and should be rendered as the claim arises.
(c) Claims for extra allowances for temporary duty at another unit must be supported by Form 95, (T.D.C.) which is to be completed in duplicate at station visited. It is officer’s own responsibility to ensure that this is done but form is not required unless a claim for allowances is being submitted. These forms are not required for periods of temporary duty in the London area. The Accountant Officer of Parent Unit receives the forms and will pay the allowances involved.
[underlined] Method of Payment [/underlined]
13. (a) Allowances are normally paid monthly in arrears by Accountant Officer of parent unit by draft to the officer’s account. (If under £5 they may be paid in cash direct to the officer).
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(a) When an officer proceeds overseas the Accountant Officer of the last parent station pays allowances (i) for the month of embarkation and (ii) for the following month but it should be noted that the payments are made to officers’ banking accounts. A.M.O. A.188/42.
[underlined] Marriage and Birth Certificates [/underlined]
14. When an officer marries, the marriage certificate is required to support P.O.R. entries and the claim for married allowances. Birth certificates for children are also required to support any claims for additional allowance.
[underlined] Travelling Claims [/underlined]
15. (a) Claims for travelling expenses to be rendered on Form 1771 which will be signed by claimant and countersigned by officer responsible to C.O. for authorising journey. Will be paid by Accountant Officer of parent unit. Form 1771 should be supported by any necessary certificates or receipts:-
(i) Form 95
(ii) Authority to use private car
(iii) Receipt for taxi fares over 10/-
(iv) Authority for journey and relevant P.O.R. number
(v) Certificate regarding sleeping berth (K.R. 3067)
(b) Travelling on duty overnight – Rate I. If sleeping berth is paid for cost will be refunded but Rate I will be reduced by 1/3rd.
(c) Absent on duty overnight – Rate I may be paid for two successive nights in any one place. If absence is expected to exceed two nights officer will be billetted [sic] and paid normal billeting allowances (i.e. 3/- or 2/-). If he is billetted [sic] for a period not expected to exceed 14 nights, and he cannot, for service reasons, dine in mess, he will be paid in addition to normal billeting allowance:-
(i) Special nightly subsistence rate – 8/6d per night.
(ii) H.R.R.A.
(d) A Rate I allowance covers a period of 24 hours and is not issuable in respect of journeys commencing after or finishing before 03:00 hours.
(e) Daily absences:-
(i) Rate 4 – 5/1- hours
(ii) Rate 5 – over 10 hours
(f) Taxi fares:
If no Service transport or suitable public conveyance is available a taxi may be hired and the fare claimed on F.1771 in the following cases:
(i) Officer travelling over 2 miles without baggage.
(ii) Sergeant or above with heavy baggage.
(iii) When saving of time is essential (officers only)
(iv) Airman under arrest.
(v) Invalids on M.O’s certificate.
Fares of over 10/- must be supported by receipt.
(g) Gratuities never admissible. (K.R. 3067)
[underlined] Airmen’s accounts [/underlined]
16. Maintained at parent station as a Ledger Account. Normally a running account, closed only on death, desertion, discharge, posting to a new unit and at 4 monthly balancing periods.
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(Ledgers sent to Air Ministry for audit). Use of F.887A.
R.A.F. and Army systems. Airmen have free access to their Accounts. Accountant Officer’s duty to explain doubts and queries.
[underlined] Airmen on Posting [/underlined]
17. Airmen travelling on duty should be issued with rations for the journey plus subsistence allowance in advance:-
Journey 8 – 12 ………………1/6d)
Journey over 12 hours ……2/-) A.M.O. A.19/40
[underlined] Airmen – Rates of Pay [/underlined]
18. Rates for the various groups are laid down in K.R. para. 3447.
[underlined] Advances [/underlined]
19. Advances of pay made to airmen only on written authority of C.O. Advance of 14 days also made when airmen are proceeding overseas.
[underlined] Stoppages, Forfeitures [/underlined]
20. Stoppages of pay are made under Sections 138 and 145 of Air Force Act whilst forfeiture is awarded under para. 1138 K.R. and automatic forfeiture is dealt with under K.R. 3470.
[underlined] Pay, other than substantive [/underlined]
21. In addition to substantive, the following classes of pay are granted:-
(a) War Pay (Airmen 1/- Boys 6d W.A.A.F. 8d.
(b) progressive Pay (K.R. 3449)
(c) G.C. Pay (K.R. 3452)
(d) Qualification Pay (K.R. 3454)
(e) Duty Pay (K.R. 3455)
(f) Flying Instructional Pay (A.M.O. A.635/43)
(g) Hard-lying Money (K.R. 3459)
(h) Drivers’ bonus (K.R. 3456)
[underlined] Unemployment and National Health Insurance [/underlined]
22. All personnel in the ranks are covered by insurance under the above Acts but charges are not made against their accounts in this connection.
[underlined] Family Allowance [/underlined]
23. (a) Payable to wives of all married airmen (and guardians of airmen’s children) in respect of wife and children up to school leaving age, including illegitimate children and unadopted children brought up as part of the household, provided the airman makes a qualifying allotment (A.M.Os A.594/44, A.5/45).
(b) Family allowance ceases:-
(i) Death of wife (unless housekeeper is employed to look after children).
(ii) Wife’s admission to state-aided institution.
(iii) Estrangement.
(iv) Imprisonment of wife.
(v) Misconduct of wife.
It is the airman’s responsibility to report such cases to his C.O. Under A.M.O. A.1198/43 family allowances for divorce or separated wives may be continued in certain circumstances. See also A.M.O. A.598/44.
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(c) It ceases for all days of absence without leave over seven days and after first two months of imprisonment or detention for a civil crime. It never ceases for a Service offence. For continuance of allotment during periods of forfeiture of pay other than for absence see A.M.O. A.739/43.
(d) Family allowance is claimed on Form 850 supported by marriage certificate.
(e) An airman living out with his wife receives H.R.R.A. (3/3d a day at present for airmen) and family allowance.
(e) [sic] An airman living out apart from his family because public quarters are not available and billeting is impracticable, will be paid lodging allowance (Rates K.R. 3259) (A.M.O. A.1329/43 for London area).
[underlined] Dependants’ Allowances [/underlined]
24. (a) Airmen not in receipt of family allowance may claim a dependant’s allowance in respect of an ‘unmarried wife’ or in respect of any other person related to him whom he can prove to be dependant on him.
(b) Dependancy [sic] for a period of six months prior to enlistment must be established.
(c) Airmen must make a contributory allotment as laid down in A.M.O. A.1209/42.
(d) Allowance is claimed on Form 1219.
(e) In no way a right. Each case taken on its merits and subject to review.
[underlined] Voluntary Allotments [/underlined]
25. May be made as follows:-
(a) If not entitled to family or dependant’s allowance only one allotment may be made.
(b) If entitled to family or dependant’s allowance two allotments may be made provided one is to recipient of the family or dependant’s allowance.,
(c) Allotment must not be made to a firm or company.
(d) Amount of allotments must not exceed 3/4 of pay.
(e) Allotments are made on F.1796A.
[underlined] Post War Credits [/underlined]
26. Airmen 6d)
Boys 3d)
Airwomen 4d) A.M.Os A.474/42 and A.1330/43 Credits take effect from 1st January, 1942
[underlined] War Service Grants [/underlined]
27. (a) Application made on Form WSG 21 obtained from Post Office. Handed to Accountant Officer on completion.
(b) Airmen will be presumed to be making an allotment at least equal to rates laid down in A.M.O. A.1032/42 as amended by A.710/42. See also A.M.O. A.452/39.
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[underlined] Petrol Rationing [/underlined]
28. Use of private car for:-
(a) Journeys on duty
(b) Journeys between residence and place of duty.
(c) Leave travel allowance.
(d) Recreational allowance for operational aircrew.
(e) Mileage allowance for use of private car. See A.M.O.s A.592/42, A.744/42, A.908/42.
(f) Motor mileage allowance – on posting neither cash allowance for petrol coupons will be authorised for journeys of over 200 miles, but if owner of the car is an authorised user the car may be taken to the next station if required there, or to a selected garage by rail at public expense. (A.M.O. A.1067/43).
[underlined] Amendments to this Precis [/underlined]
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APPENDIX “A” TO PRECIS ON [underlined] PAY AND ALLOWANCES [/underlined]
[underlined] INCOME TAX [/underlined]
R.A.F. Officers are liable to Income Tax in respect of their full pay less uniform allowance. In general, allowances in respect of lodging, furniture etc. and marriage allowances are not subject to Income Tax.
2. The Tax payable is collected by deduction from pay over the whole Income Tax year, the amount deductable being in many cases based provisionally either on the liability of the previous Income Tax year or on an estimate based on the Income Tax Returns submitted by the individual concerned.
Various examples will best illustrate the position:-
[underlined] Example 1 [/underlined]
The Statutory Income of a single officer (who has no income other than his pay and no liabilities which qualify him for Dependants Allowance or Life Assurance relief etc.) is his pay, less Uniform Allowance. The Uniform Allowance is £25 for Flight Lieutenants and below and £30 for Squadron Leaders and above.
Thus, taking a Squadron Leader whose pay amounts approximately £550 per annum and deducting Uniform Allowance of £30, the resultant Statutory Income is £520. On this income the tax payer is entitled to:-
Earned Income Relief (1/10th of Total Earned Income) …….. £52
Personal allowances (£80 for single officers) ………………. [underlined] £80 £132 [/underlined]
[underlined] £388 [/underlined]
Thus his taxable income is £388 on which he bears tax at 6/6d. on the first £165 …………. £54
and 10/- on the remainder [underlined] £111:10:0d [/underlined]
[underlined] £165:10:0d [/underlined] Total Tax payable
[underlined] Example 2 [/underlined]
The Statutory income of a married officer is arrived at in the same way as for a single officer, i.e., pay less uniform allowance. Earned Income Relief at 1/10th of earned income is also the same. The personal allowance is increased to £140 and an allowance of £50 is given for each child.
[underlined] N.B. [/underlined] R.A.F. married allowances are [underlined] not [/underlined] taxable.
/Contd …….
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taking a Flight Lieutenant (in receipt of the new rates of marriage allowance) living out with his wife and two children. He receives from R.A.F. sources:-
[heading] [underlined] PAY – ALLOWANCES [/underlined] [/heading]
365 days @ 21/9d. … £397 – Living with wife … 5/- a day
Uniform Allowance … [underlined] £25 [/underlined] – 2 children … 5/6d a day
£372 – Servant and HRRA … [underlined] 4/10d. [/underlined] a day
[blank] – 15/4d. a day
= £280 per annum NOT TAXABLE
Earned Income Relief at 1/10th = £37
Personal Allowance
Children [underlined] £160 £277 [/underlined]
[underlined] £95 [/underlined]
although his total income is £677 per annum (£397 and £280) his taxable income is only £95.
he pays tax at 6/6d. (his total taxable income being less than £165).
Total Tax payable = £30 17s. 6d.
It is assumed of course that this officer has no income other than R.A.F. pay – nor has he any other liabilities which might give him further allowances.
3. Where an officer has other income in addition to R.A.F. pay, it will of course be added to his pay to arrive at his statutory income. If it is unearned income, e.g. dividends from shares or rents received, the Earned Income Relief will not of course apply.
Tax on dividends and rents receivable is generally deducted at source at the standard rate, i.e. 10/- in the Pound, therefore, if an officer has 100 £1 shares in a Company and a dividend of 10 percent is declared, i.e. £10 on his shares, he will receive the £10 less tax at 10/- in the Pound, that is to say - £5.
For the purpose of his statutory income, this £5 is grossed up to the original £10. His income tax liability is then worked out and the amount of tax already suffered i.e. £5 is deducted.
If applicable an allowance of £50 may be claimed for a Dependant Relative. This allowance may be claimed where a Tax Payer maintains at his own expense:-
(a) Any relative who is incapacitated by old age or infirmity and whose total income, exclusive of voluntary allotment, does not exceed £30 per annum.
(b) A widowed mother under the same conditions as in (a).
Relief is also granted in respect of life insurance premiums paid. This is deducted in terms of tax from the tax otherwise payable.
4. [deleted] The Income Tax liability of an officer is quite simply assessed as shown in the examples already given: but difficulty is sometimes experienced owing to the fact that officers do not appreciate that the current monthly deductions from pay made by their [/deleted]
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[deleted] bankers are in respect of their previous year’s income. Thus, supposing that the Income Tax liability of £165 10s. 0d. shown in Example 1 is in respect of the fiscal year 1942-1943, that is to say April 6th, 1942 – April 5th 1943, this Squadron Leader’s bank will deduct some £14 a month from April 1943 to April 1944 and in this way will amass a sufficient sum by April 1944 to pay the Income Tax (£165 10. 0d.) due for 1942 – 1943. It is obvious, therefore, that although deductions have been made from the officer’s pay during 1943-1944, these deductions are in respect of the previous year’s income and his 1943-1944 income has not so far been subject to Tax. [/deleted]
[underlined] Example 3 [/underlined]
A single Flight Lieutenant with no income other than his R.A.F. pay and no liabilities became a Flight Lieutenant in April 1941 – he remains a Flight Lieutenant until April 1942 when he is promoted Squadron Leader.
From April 1941 – April 1942 his bank will deduct from his monthly pay a sufficient sum to cover his tax liability for 1940 – 1941. Up to April 1941 he was a Flying Officer with a total income of £331 10s. 0d. per year.
Thus his tax liability for 1940 – 1941 is:-
Total Income … … £331 10s. 0d.
Less Uniform Allowance … [underlined] £25 0s. 0d. [/underlined]
£306 10s. 0d.
[symbol] Less E.I.R. 1/6th .. £51
[symbol] Less P.A. [underlined] £100 - £151 0s. 0d. [/underlined]
TAXABLE INCOME [underlined] £155 10s. 0d [/underlined]
[symbol] £155 10s. 0d. at 5/- = £38 17s. 6d. to pay
[underlined] N.B. [/underlined]: [symbol] (At 1940 – 1941 rates of Tax).
Therefore his bank will deduct some £3 a month from pay from April 1941 – April 1942 to cover the Tax on his 1940 – 1941 income, viz. £38 17s. 6d., but from April 1941 – April 1942 this officer is a Flight Lieutenant receiving £397 per year and not £331 10s. 0d. The tax on £397 will not be deducted until 1942 – 1943. This officer is promoted to Squadron Leader in April 1942, so his total income for 1942 – 1943 is not £397 but £550; and once again tax on £550 will not be deducted until 1943 – 1944.
From the example given it is clear that the current deductions from pay are to settle the tax on the previous year’s income and Tax on the income of the current year is not paid until the following year. Therefore, at the end of the War, on discharge, most officers will find that they still have a lump sum of Tax to pay on their final year’s income. It is the practice of some officers therefore, to ask their bank to increase their monthly deductions as soon as they are promoted, thereby originating a credit to help pay their ultimate tax liability.
[underlined] Post War Credits [/underlined]
Section 7 of Finance Act 1941 provides that on a date to be fixed in due course by the Treasury after the termination of the War, an individual Tax Payer shall have credited to him the additional tax he has been called upon to pay by reason of the reduction of certain reliefs and allowances. Post War Credit are issuable in respect of 1941 – 1942 and subsequent years. Thus
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taking Example 2 – suppose this Flight Lieutenant had been living out with his wife and family from 1941 to date. Then tax of £30:17:6d. is payable for the fiscal years 1941 – 1942, 1942 – 1943 and 1943 – 1944.
His Post War Credit is arrived at as follows:-
E.I.R. at 1/6th instead of 1/10th would be £62 and not £37 as shown – a difference of £25.
P.A. would be £170 and not £140 – a difference of £30.
Total difference £25 plus £30 = £55.
He has, therefore, suffered additional Tax at 6/6d. in the Pound on £55 = £17:17:6d. Therefore £17:17:6d. per year is his Post War Credit which is returnable on the termination of the War.
When his tax is finally amended after the War this officer will have paid £13 per annum in tax, (that is to say £30:17:6d. less Post War Credit of £17:17:6d.).
This Appendix is in no way a comprehensive guide to Income Tax, but is merely a guide to the principles involved and certain general allowances applicable to a serving officer. In cases of difficulty an officer should contact Air Ministry Accounts, Stroud, who deal with Income Tax, a local Inspector of Taxes, or a professional accountant.
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1. On what occasions are Forms 1443 rendered?
2. What claim (if any) is made when Form 1443 is rendered?
3. Under what circumstances may an officer draw an advance of pay?
4. What allowance is made in lieu of an issue of camp kit?
5. When may an officer draw ration allowance at 3/- per diem?
6. What are the rates of billeting allowance for officers?
7. If a single officer cannot be provided with quarters, what allowances will he draw?
8. State the differences for allowance purposes between a ‘qualified married officer’ and an ‘unqualified married officer’.
9. May an officer commissioned after 1st January 1942 elect to receive any different rates of allowance?
10. What extra allowance does a ‘married officer’ draw for additional children after the first?
11. Under what circumstances may a ‘married officer’ be given permission to live out?
12. To what officers may furniture allowance be issued?
13. State the types of ration allowance and the amounts for R.A.F. officers.
14. State rates of servant allowance and field allowance.
15. How are marriage allowances claimed and when?
16. Indicate two instances for which Temporary Duty Certificates are not required.
17. How are allowances paid to an officer?
18. When an officer is posted overseas, who is responsible for the financial arrangements for his family?
19. On what occasions must certificates by attached to Form 1771?
20. What period of time does Rate I travelling allowance cover?
21. For what airmen are taxi fares admissible on a travelling claim?
22. State two circumstances under which stoppages may be made from an airman’s pay.
23. For whom may an airman claim dependant’s allowance?
24. What advance of pay can an airman obtain?
25. Are Post-War credits debited against an airman’s account?


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