Seamans Tax Deduction UK. (SED)

[Richard Browne]

Hi Guys

I know only I can make this decision, but its a big decision and hard to know which way to go..I currently live in Australia and am subject to taxation there on my world wide income…which is all the money I earn offshore ROV in SE Asia..From the UK originally Iam contemplating a move back there to benefit from the SED…Could you guys for see a change in the rules for the SED or indeed stopping it altogether..I know this is hard to forecast but wouldnt want to make the move back to UK and then all of a sudden the rules change…Im sick of paying exhorbitant income tax in Australia, when I could live somewhere else and pay none from working offshore…What would you do??

[James McLauchlan]

I can’t see SED going away anytime soon. If anything claiming SED is a little more simple now that HMRC got their arse kicked a while back (2004 I think) for trying to claim that any vessel working on an oil & gas asset (pipeline surveys etc) was deemed to be an ‘installation’ for SED tax purposes.

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The latest information on how to qualify can be found on the HMRC website at:
HMRC link : Do I qualify for Seafarer’s Earnings Deduction?

The latest information on what is deemed to be a vessel (ship) by HMRC.
(James comment: Basically, if it falls under the link below you can claim SED if you have the offshore days and the foreign port call.)
HMRC Link: EIM33104 – Seafarers’ Earnings Deduction: offshore installations and ships: years up to and including 2007/08: examples

The latest information on what is deemed to be an installation by HMRC.
HMRC link: EIM33103 – Seafarers’ Earnings Deduction: meaning of offshore installation: 2004/05 onwards

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Of course HMRC can’t make it totally simple (that would be too easy!) as there are a few if, buts and maybes thrown in by them for good measure. IMHO, The one to look out for is ‘Light well intervention vessels’ that might, in the course of a year carry out well intervention. Not so bad if you only do one trip on it that year, but maybe not so clever if you do multiple trips.

regards

[Richard Browne]

Thanks for the info James…I hear you need to be classed as an employee of a company to qualify for SED, which Iam not I work for various companies, agencies but always have a contract…I contacted a couple of sea tax specialists in the UK and they have told me that you dont necessarily have to be an employee as such and that providing a contract can be produced this should suffice…Could someone please clarify this ? Thanks.

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