After negotiations between HMRC and the trade union in 2012, the new Seafarers’ Earnings Deduction (SED) law enables seafarers who qualify to claim 100% tax exemption on overseas earnings.
Although SED doesn’t apply to members of the Armed Forces deployed overseas, if you’re a UK resident employed on board a ship operating outside British waters, you may qualify for a significant reduction in your tax liability.
There are three rules governing whether you can claim SED:
First, your employment must be on board a ship. A seafarer is classed as someone who is employed on the ship, so offshore installations are not included, as they are not regarded in law as ships.
Secondly, in each tax year, your employment must include a minimum of one voyage that begins or ends at a foreign port.
Thirdly, you must have a valid claim period of at least 365 days that begins and ends with time spent outside the UK. Once the initial 365-day period has been completed, the SED carries on indefinitely, until there is a failure to adhere to the conditions.
We will save you time and alleviate stress by ensuring you get everything to which you are entitled. If you don’t have any valid claims for a year, we won’t charge you a penny.