We are aware that HMRC are looking into Seafarers claims in more detail as a result of the downturn in the oil and energy sector. Many vessels that were previously active have remained in dock or have embarked on shorter trips.
Consequently many seafarers who previously had qualifying claims no longer have sufficient days outwith the UK 12 mile limit.
Individuals who meet the criteria for the Seafarers Earnings Deduction (SED) can claim back up to 100 percent of the UK PAYE that they have paid throughout the year.
In order to claim the ‘SED’, a taxpayer must meet the following qualifying conditions:
- The vessel must be a qualifying vessel.
- You must be carrying out all work duties on the vessel in order to qualify.
- The vessel must have either been embarked or disembarked by yourself at a foreign port at least once in a UK tax year.
- The claimant must have had more than 183 midnights out with the UK 12 mile limit in any 365 day period. Special attention needs to be paid to the midnight positions of the vessel.
- An eligible period consisting of at least 365 days must have been achieved. This needs to have been passed before a claim is made.
If you are unsure as to whether you may be eligible to claim the ‘SED’ or you require any assistance or further information on the ‘SED’, please do not hesitate to contact Isla Mayfield (firstname.lastname@example.org) or your usual AAB contact.