If you work as an employed ‘seafarer’ on a ship in non-UK waters, there is a tax concession (Seafarer’s Earning Deduction) that allows a UK resident to claim a total deduction against that income and therefore the earnings become free of UK income tax.
Criteria for SED Qualification
- You must be employed ( not self-employed).
- You must be a UK resident for tax purposes.
- You must have a ‘qualifying period’ lasting at least 365 days ( so you must be employed as a seafarer for at least one year) commencing and ending with a period outside the UK.
- You must not be in the UK for more than 182 days in that 365 day qualifying period.
- You must ensure that in any qualifying period your days IN the UK do not exceed days OUT of the UK.
- You must ensure that the vessel you are on visits at least one foreign port during the tax year.
How is SED claimed
We act for 100’s of mariners. We schedule income in a format acceptable to HMRC and include this within their self-assessment tax returns, where the SED claim is made.
A technical area and most important as it determines the right to receive payments for state pension, contribution based employment and support allowances, bereavement benefits and paternity allowances.
We are fully conversant with Mariners Questionnaires and the submission of same to HMRC’s marine NIC unit in Cardiff.
Maritime Security is a specialism of ours. We understand the commerciality of this sector, its margins and profit drivers. We coach on how these businesses commercial risks can be managed.