Are you employed in the oil and gas industry?
It is important that you are aware of the rules of tax and National Insurance (NI) in your sector to ensure you don’t overpay tax or that you don’t get in trouble with HM & Revenue Customs.
But how your tax and NI is treated, depends on several
- Where you work
- Whether or not you are a UK resident
- Whether your domicile country has a Double Taxation Agreement
(DTA) with the UK
UK Resident Oil & Gas Workers
If you are a UK resident working in oil and gas field, or in offshore installations in the UK or designated areas in the UK
Sector of the Continental Shelf, you are expected to pay the usual tax and NI. But you may be eligible for NI exemptions on expenses, if your employer or someone else pays for your travel and accommodation expenses, during your stay on the mainland to the departure point.
Double Taxation Agreement
If you are a resident in a country that has DTAs with the UK, then your tax is treated based on the terms of the agreement. If you work for an employer based overseas or you worked outside of the UK long enough, you may be exempted from UK tax under certain DTAs.
As for NI, you may or may not have to pay for it based on a number of factors, and whether or not the UK has a Social Security Agreement with the country you live in.
To avoid mistakes or problems in the future, refer to tax experts who can help you in your specific situation.