Budget change affecting claims

[Steve White]

Your should be aware that from the 6 April 2008 HMRC will now treat the day of departure as being a day in the UK as well as the day of arrival.

This will affect ongoing tax calculations for Seafarers making claims under NOT Resident/Not Ordinarily Resident Rules.

[James McLauchlan]

Thanks for the update Steve.

I’m sure this will be a useful heads up for many of our UK based Forum members.

best regards
James Mc

[low_ir]

Will this affect people claiming the Seafarers Foreign Earnings Deduction?

[Savante]

look i’m not paranoid – I know they’re out to get me!!! 😯

Here is my winter of discontent !

[Steve White]

Yes, this will effect those claiming Seafarers F.E.D…

[Savante]

If you’re on a month on/month off, basically it means you’ve got to put in at least a 6-7 weeker on at least one trip to get your FED (make up for the lost 14 days that no longer count+2 to make up on the two days travel on your extended trip).

Oh and in addition, be outwith 12 miles, have a foreign port……

Is this correct steve? Nigh on impossible to get IMO unless you’re employed, on a regular rotation, overseas, have a good back-to-back – is this the impossible dream that Reese talks about??? 😆 beginning to sound a lot better to me to stay overseas.

So in simple terms your 183 now bumps up to 199 days at sea?(or what we would normally consider days at sea!)

[Steve White]

It does look like that under the scenario you are suggesting 🙁 ……isn’t it always better overseas ?….that’s where the possible dreams are aren’t they…and the one’s you’d rather no-one else knew about 😉

[low_ir]

Thanks Steve

I was in touch with SK Tax yesterday about this, they don’t know of any impending changes to the Seafarers FED, but did say that it has always been the case for NOR Claimees.

Is there a web link you could provide so we can see these rule changes first hand?

[Steve White]

Im afraid I don’t have a link. This came from a Revenue inspector with whom I was engaged in a tussle on behalf of a client. I expect to have correspondence on it soon. If I can find something ‘official’ I will post it.

[K9]

Your should be aware that from the 6 April 2008 HMRC will now treat the day of departure as being a day in the UK as well as the day of arrival.

This will affect ongoing tax calculations for Seafarers making claims under NOT Resident/Not Ordinarily Resident Rules.

i’ve just contacted cardiff 1 & they tell me this is incorrect.
rules are as before.
rules affecting residency status have changed though which i assume is where the confusion has come in.

[Steve White]

This was a direct quote from HMRC at the time of writing.

They have refined this to say that if your are not out of the UKCS at midnight then the day will be classed as in the UK.

[Ray Shields]

This was a direct quote from HMRC at the time of writing.

They have refined this to say that if your are not out of the UKCS at midnight then the day will be classed as in the UK.

So – no change then. As at present, if you are outside the 12 mile limit at midnight it is a day out of the UK.

However, as you previously said on another thread – if your vessel does not leave the UK sector during that trip and returns to a UK port, NONE of these days can count towards your claim as you have never left the UK or visited a foreign port?

[Steve White]

That’s correct…

[K9]

as i said before, theres no change.

[Author]

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