Andrew Baker - Taxation Consultant

UK tax advice for residents worldwide – including Non-Resident Landlords, Pilots, Aircrew, Seafarers, Yacht Crew and Non-Doms
Telephone: +44 (0)1243 582926       Mobile: +44 (0)7795671536       Email: baktax@aol.com 

Seafarers and Yacht Crew

Seafarers and Yacht Crew 

Seafarers' tax and the 100% Seafarers' Earnings Deduction

Individuals regarded as resident in the UK (and non-resident EU and EEA nationals since 6th April 2011) employed in any capacity on a vessel, (whether it be as a captain or a deckhand on a superyacht or a stewardess or an entertainer on a cruise ship, as security or as an engineer on a boat in the anti-piracy or oil industries, or a chef in the merchant navy) are entitled to claim the seafarers' earnings deduction to exempt their earnings only from UK tax, where they qualify. However, other worldwide income and gains will remain liable to UK tax.
Yacht in the sea around the island on a background of the sky with clouds
For a seafarer to qualify for the deduction, a qualifying period of at least 365 consecutive days needs to be set up, which can include non-work days. This period can straddle more than one tax year. 

Duties are regarded as being performed outside the UK if they are carried out on a vessel where the voyage or part voyage begins or ends outside the UK. The UK sector of the North Sea is treated as part of the UK. There must also be at least one foreign port visit in each employment in each tax year.  

Visits to the UK must not exceed 183 consecutive days nor one half of the qualifying period by counting midnights. For the latter, the period concerned runs from the first day abroad to the last day of the period spent abroad, after the previous visit spent in the UK:
Period Days Absent Days in UK Total Days 50% Cumulative UK Days Test
01/05/15 to 29/07/15 90          
30/07/15 to 19/09/15   52         
20/09/15 to 19/12/15 91    233 116   52 Pass
20/12/15 to 10/02/16   53         
11/02/16 to 10/05/16 89    375 187   105 Pass
If you would like me to monitor your UK visits to ensure you qualify for the SED and prepare and file your annual 
self-assessment tax return or are looking to obtain proof of earnings for mortgage application purposes (HMRC form SA302), please contact me for a fixed fee quote.
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