As a seafarer working outside the UK, you can reduce your tax bill through the Seafarer’s Earnings Deduction (SED).
You are eligible for a SED if you work on the ship, you rendered work outside the UK long enough to qualify, and you are a resident for tax purposes in the UK or in a European Economic Area State. You can check your residency status through the online tax residence indicator of HMRC.
To claim, you must keep a record of your air tickets or other travel vouchers, passports and visas, seafarer’s discharge book, hotel bills or other receipts, freeboard logs of the ships where you carried out your duties, and completed Help Sheet HS205.
Your days outside the UK should be long enough to count as within the ‘eligible period’, which means you should be outside the UK for the majority of the tax year.
Ask a UK resident, you can claim SED by registering for self-assessment and completing a tax return. If you are a resident in an EEA State, you will have to claim a deduction using a different form. If you are a non-UK or non-EEA resident working as a seafarer and paying UK tax as an employee of UK shipping companies, you may get a tax back by completing the R43M Repayment Claim form.
There is a time limit that you can claim SED.
The deadline for filing your UK tax return is the 31st January following the end of the tax year.
For the tax year 2020 to 2021, as the 2020/21 tax year runs from 6th April 2020 to 5th April 2021, you can only claim until 31st January 2022.
Need to apply for your tax refund? Get in touch at firstname.lastname@example.org.
Or apply online using Seafarer Tax Refund Form.