ltd company or sole trader. whats best for seamans deduction

This topic has 7 replies, 7 voices, and was last updated 11 years, 5 months ago by Cabledog.

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November 17, 2012 at 12:23 am #5884

gary
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looking to go agency in the next few months and was wondering whats best for a uk resident looking to work in uk waters and abroad for claiming seafarers deduction and tax implications in general.

ltd company or sole trader the better option? any info would be great as im not that clued up with it all!

cheers

November 17, 2012 at 4:04 pm #33520

Bristar
Participant

During my contracts I’m employed through Armada Marine http://www.armadamarine.co.uk/ they only charge me 2% + £5 per day, but seeing as they’re based in Guernsey they don’t need to pay UK Employers NI, and I get paid Gross.

I then have a normal accountant that prepares my tax return every year.

November 17, 2012 at 7:44 pm #33521

Ray Shields
Participant

looking to go agency in the next few months and was wondering whats best for a uk resident looking to work in uk waters and abroad for claiming seafarers deduction and tax implications in general.

ltd company or sole trader the better option? any info would be great as im not that clued up with it all!

cheers

My understanding is you must be an employee to be able to claim the Seafarers Foreign Earnings Deduction. So you would have to be an employee of your ltd company to claim it?

February 28, 2013 at 6:53 pm #33522

Member Deactivated
Participant

In my opinion ltd company will be the best option for you.

March 5, 2013 at 12:21 pm #33523

Steve White
Participant

We provide the same as the Guernsey company but from Hong Kong at a fixed monthly fee and including the SED claim – no percentages !

May 27, 2013 at 7:44 am #33524

Cabledog
Participant

Right,

If you are set up as a LTD Co, you can still claim the S.E.D IF you are on a vessle, is that correct? BUT you cannot claim anything if you are rig/installation based?????

When you set up a LTD Co, even as the owner of the Company you are employed by the Co so that covers one issue mentioned a bit earlier in this post.

The rest I am getting a handle on it, but it is a complete minefield and a lot of the loopholes that have been used in the past are being slammed firmly shut. Personally I blame google and Starbucks, tax avoiding tossers 🙂

Be good
Dog

May 27, 2013 at 11:54 pm #33525

Paul Bond
Participant

As a Ltd company, you will still be liable for corporation tax at 20%. The SED is a personal tax issue.

May 28, 2013 at 8:24 am #33526

Cabledog
Participant

Ahhh, ok. So, if set up as a LTD Co, you take a small salary, and the rest as dividends, which you pay personal tax on, right. Then you claim the SED back on that?

Does anyone leave money in the company account and have to pay the 20% Corp Tax. OR do you reduce that liability by paying into a pension, etc etc?

Or is Sole trader the better way to go………

Anyway, got a sit down with my accountant tomorrow to sort all this crap out, will keep you updated.

Be good
Dog
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