Qualifying and Claiming SED – Summary

[James McLauchlan]

Last update: 2011-04-27

Below is a brief interpretation of what’s currently needed for a UK based seafarer to qualify for and successfully claim SED. If you are unsure of where you stand regarding SED please consult your accountant as rules can and will change!

Qualifying and Claiming SED – Summary

• Must be a seafarer (*See note below) working onboard a Ship.
• Each Claim/Qualifying period must run for a minimum of 365 days.
• During each 365 day claim period, at least 183 days must be out of the UK.
• The IN country days should not exceed the OUT country days or the Qualifying period (365 days) will fail.
• Days in the UK should not exceed 183 or the claim will fail.
• There must be at least one foreign port visit in each 365 day claim period.
• If 100% SED (i.e you fully qualify for SED) then personal tax allowances can be used for other sources of income, i.e. military pension or property lets.

* Currently a ‘Seafarer’ appears not to be clearly defined.
At the moment an ROV tech appears to be accepted as seafarer for the purpose of SED

[Seabedracer]

This very helpful.
I’m EU citizien but not Uk national and pay 20%tax when working in UK waters, is this reclaimable for me.

Info in my case is very rare and mybe you have an idea where to look at.

Cheers 😳

[Anonymous]

I’m EU citizien but not Uk national and pay 20%tax when working in UK waters, is this reclaimable for me.

Anyone working in the UK sector is liable for UK tax, irrespective of nationality or residency. Its pretty much like Norway in that respect. Its were the money is earned that determines if UK tax is due. The exception is SED, which is open for EU residents who pay UK tax from April 2011. The UK has tax agreements with other countries and it may be possible to transfer liability to home your home country.

How its possible to pay a flat rate of 20% I’m not sure. I have however seen South African folks on a similar deal and a flat rate of 20% globally. I can only presume the company takes an "average" tax liability worldwide and applies this monthly. How this is legal is beyond me.

Is the 20% reclaimable? If you qualify for SED then its possible.

[Des_b]

Seabedracer,

You should ask a tax firm that specializes in seafarers…ie seatax or bluribandtax. On this very site ‘yourtaxoffice’ has provided quite a few posts on tax. Just google ‘seafarers tax specialists’…not too difficult 😀

Speak to them direct to get an idea of what you should do and whether you can qualify. Each individuals situation is different and they will be able to advise you for your current situation…

Good luck

😀 😀

[Seabedracer]

Thanks chaps

I had a correspondence with seatax before but the are specialised in Uk nationals living abroad.
But it seems that I can claim the UK tax back in the end of the year.
The catch in my view is that the 20% of my dayrate will be deducted anyway.
But paying the real UK tax starts only after the 7475pounds allowance!
After I have worked for the allowance the 20% uk tax will flow into the system.

Anyway it seems a bit strange

[Bacaruda]

Question Gent’s on qualifying period.

I’ve run the IR 205 for over 450 days and have 31 days in hand but without a foreign port call. I now have a foreign port but if i go back only 365 days from the foreign port call I break the half day rule

Can anybody tell me if I have a valid claim period?

Cheers in advance

[Author]

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