If you're an employee and work at sea, you may be able to reduce your tax bill by getting Seafarers' Earnings Deduction (SED). If you're entitled to it and haven't claimed it before, you may be able to claim for the last five tax years, as well as this year.
To get the deduction you must:
You get the deduction from your earnings as a seafarer if you have an 'eligible period' of at least 365 days that consists mainly of days when you are absent from the UK. There are special rules for working this out - see below 'How to calculate the deduction'.
Anyone who works on a ship can get the deduction. For example, you can get it if you are employed as an entertainer, cook, travel courier or musician.
You can't get the deduction if:
To see if you're entitled to the deduction, you need to work out whether your days outside the UK are enough to make up an eligible period. You can use Help Sheet HS205 'Seafarers' Earnings Deduction' to help you do this.
If you've got more than one job, you'll still get the deduction against your pay as a seafarer if you meet all the conditions.
HM Revenue and Customs (HMRC) may want to check your tax return so you'll need to keep details of:
If there's any doubt they will contact your employer for details of the ship's voyage and crew.
You'll have to complete a Self Assessment tax return, including the supplementary Employment and Additional Information pages. If you are not sent one, you can download it from the HMRC website or request one.
If you're a seafarer who's not resident in the UK, but you pay UK tax because you work for UK shipping companies, you may be able to get your tax back. You'll need to complete form R43M Repayment Claim.
If you need help or advice, you can call the Seafarers' Helpline on 029 2032 5045. It's open from 8.00 am to 5.00 pm, Monday to Friday.
Money, tax and benefits
