Seafarers Tax Refund

Have you filed a ​Seafarers Tax Refund claim?

​If you work at sea outside the UK, you may be eligible for a tax relief through the Seafarer’s Earnings Deduction (SED). This unique piece of tax legislation provides you with an opportunity to claim 100% tax on your earnings abroad.

Do you spend most of your time offshore? Whether you work in the shipping industry or on a cruise ship. You may be due a seafarers tax refund.

According to HM Revenue & Customs, certain criteria must be met in order to qualify for a Seafarers Tax Refund, more officially known as a Seafarers Earnings Deduction (SED) or the Foreign Earnings Deduction (FED). The refund is available only to those who are ordinary residents of the UK or – in some cases – of the EEA, who are working aboard ships for a 365 day period and who spend at least some of the year at least 12 nautical miles outside of the UK.

When do Seafarers Tax Refunds Apply?

The period spent outside of the UK doesn’t necessarily have to involve employment. Holidays and non-employment travel are also considered valid reasons to be out of the country. Remember, though, in order to claim the Seafarers Earnings Deduction, one must begin and end the 365 day period with time outside of the country. One must also not spend 183 or more continuous days during that year-long period inside of the UK.