seafarers earnings deduction, taxman headache

[bluemoon]

The taxman is trying to say i and many others are not entitled to seafarers earnings deduction as i was working direct for an agency who paid the tax & ni on our behalf and they do not consider that the agency acted as an employer, but that we were infact self-employed.
Any information will be helpful ive contacted various offshore tax specialists & the union.
Despite arguing the case the taxman still insists that the agency operatives were self employed therefore not entitled to SED

CHEERS

[Anonymous]

Hi
Where are you from, maybe that would help a little, by the why i cant help, dont pay tax and the taxman is not after me.

[rover37]

This should cause serious panic in the agency ranks!!!
Seriously though which countries taxman and if its UK which office?

[Savante]

you might ask if the rules for ascertaining whether or not you are employed by an agency – see what they say about testing your contract of employment using the IR35 questionaire. (do you have any commercial risk associated with your employment – if not then you are employed, if you have commercial risk then you are self-employed!).

[bluemoon]

I’m a UK resident who qualified for SED on the half day ruling & i have plenty of days in credit.
The TAX office in question is the main one in scotland centre 1.
I believe they have tried this arguement in the past with others but now appear not to accept status of employee for direct agency workers but consider them as self employed.

cheers

[Buffel]

I am currently under investigation for my tax 05-06.The Tax man has just asked for a copy of my contract with the agency! I am staff with an ROV company now and have been since dec 05. My tax was PAYE with NI taken at source. Having read the last post I am not a happy bunny. I take it that the taxman has now decided that Agency PAYE are not entitled to Seamans deduction,how then can self employed continue to pay little or no tax! I am unaware as yet what the out come will be as I am now required to supply a copy of my contract with the agency. I was told in the initial letter from the tax office that Whilst I appeared to have a valid claim some more info was required.This is, I have to say an extremely worrying development. Anybody else know anything more on this issue,got any experience? 😯

[Paul Bond]

I work PAYE through an agency. I would have thought that as they take some of my dayrate to pay their ‘EMPLOYER’ NI obligations that i would therefore be an employee.
I haven’t had any queries through from the taxman as yet and have had a couple of claims whilst under the agency umbrella.
Fingers, (and everything else!), crossed!!! 😕

[Buffel]

I am glad that I am back as staff for a company again as should they want the money back its is only the best part of one year!!But the implications of this if it comes off are huge,there will be no point in working PAYE through an agency if you get a lower dayrate for the privilige and then lose thousands by being denied any chance of Seamans deduction.I very much doubt whether companies will wnat the additional overheads of taking on so many staff,but equally right now there are insufficient bodies to go around!

Once I have heard back from the old agency and the tax office I will post again,but the agency boys onboard where I am are now a worried bunch.

[zincanode]

I believe they’re trying to get all the lost NI back.

You may be aware that many if not most marine crew tend to be employed through agencies in Gibraltar, IOM and other non-UK countries for tax purposes (though this is something the shipping companies have set up to avoid paying their share of NI). Perhaps it’s time this industry did the same. It used to be the case that once you were outside the UK 12 mile limit you fell off the radar, but not any more!

[rovnumpty]

Bluemoon

I’m under ivestigation by the taxman as well, for the same reason.

Spoke to my accountant about it, he says this is something that comes up every now and again – usually after a big staff change at the tax office. Some bright young thing reckons they’ve spotted a way to get the tax back from us and tries it out on a few people.

Looks like it’s just centre 1 in Glasgow that’s got a bee in their bonnet about it.

Savanate is correct about the liabilty thing. As you wont have paid any insurance while working PAYE for the agency, you aren’t entitled to be self-employed.

Keep us posted how you get on.

[Savante]

aye, you should hear them on the phone though – the most passive agressive bunch I’ve ever had the misfortune of listening to.

[Cabledog]

Savante,

VAT audits mate, that scares me sh$%less 😯 😯

Keep your nose clean 😉
Dog

[Savante]

my nose is indeed very clean with tax as audit it’s pretty much the only thing that scares the sh1t out of me too.

Co-incidentally I got a call this morning to say thanks for my last vat return and asked if I wanted to do this business flat rate thing instead – apparently you pay 12% instead of 17% as a flat rate? I said, nope I’m fine as it saved me a couple of bucks to do it by hand.

VAT returns and preparing documentation is the only time I ever use more than one color of ink when I’m writing.

I just keep EVERY receipt I ever collect.

[Cabledog]

I think with the flat rate you pay the 12/13% on issue of the invoice for payment and the rest ie 4/5% is taken at the end of the year when you put in your company accounts minus re-claimable bits.

But if you are not supplying materials etc there is not a lot to take off. I think thats right but my last (unintentional) conversation with the vat man was about a year a go 😳

Stick t the 17% then you know exactly where you stand.

Be good
Dog

[Buffel]

I am still having ongoing issues with centre 1 on this issue of PAYE. The agency involved has had talks with the tax man and the issue was supposed to be slipping away. The threat of the agency then asking for the past x # of years in employers NI contributions back if we were all self employed (several million £). This had been thought to have caused a rethink by the tax office. I had a letter this morning however from the tax man,far from letting this drop he is still demanding clearance as to my employement status / conditions of engagement with the agency and further more,is asking for information as ti what exactly it is that I do and what control there is over my activities. He further states that the fact that I have only ever been employed PAYE,whether as staff or through an agency is irrelevant with repsect to this issue!! This is looking like taking a long time to sort out and I am now thinking along the lines of legal representation via the RMT.The common view is that somebody in centre 1 is out to make a name for himself,but by God I can think of a fair few….more as it unfolds,slowly! 👿

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