Are You Eligible for the Seafarers Earnings Deduction – TaxBack

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Are You Eligible for the Seafarers Earnings Deduction

Life Of Seafarers

Tax Tips For Seafarers

If you work at sea outside the UK,
you may be eligible for a tax relief through the Seafarer’s
Earnings Deduction (SED). This unique piece of tax legislation
provides you with an opportunity to claim 100% tax on your earnings
abroad.

Of course, you need to prove that
you worked on a ship, you worked outside of the UK for a minimum of
365 days or long enough to qualify for SED. You may also get the
deduction if you are a resident for tax purposes of the UK or any
of the European Economic Area (EEA) State.

How To Claim Seafarer’s Earning Deduction

You must keep records of your
completed working sheet HS205, passports and visas, seafarer’s
discharge books, freeboard logs of the ships where you carried out
your duties, hotel bills for other receipts, and airline tickets or
other travel vouchers.

You must meet the prescribed days of
working outside the UK, which is a minimum of 365
days.

You must register for
self-assessment and fill in a tax return if you are a resident in
the UK. But if you are a resident in an EEA State, use form
R43M(SED) – Repayment Claim – EEA resident merchant seafarer to
claim deductions.

You must claim SED within the set
time limits. For tax year 2013 to 2014, for example, you must claim
by 5 April 2018. For tax year 2014 to 2015, you must claim by 5
April 2019.

What if you are a seafarer who is a
non-resident in the UK or an EEA state, but paid UK
tax?

You are not eligible for the SED,
but you can still claim back tax using the form R43M Repayment
Claim.

Apply
for a Seafarers Tax Refund now



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