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If you work at sea on any commercial vessel, from a Cruise Ship to a Superyacht, then you will need to complete a Seafarers Self-Assessment in your home country. Our Seafarers Tax Service is designed to make your life easier!
For example, as a UK Citizen, resident or somebody with a UK National Insurance number, working outside the UK on a commercial vessel, you are required (by law) to submit a Self-Assessment Tax Return each year. HMRC ask you to declare any income while working on a Ship, Superyacht, Cruise Ship etc.
Flying Fish help hundreds of customers each year stay on top of their tax returns.
This busy life means that boring admin tasks, such as completing your tax return, often gets forgotten. It can also be a pretty daunting process, too!
Its obvious why crew just put tax returns to the bottom of the pile however, all seafarers must complete their tax return. Penalties for incorrectly completing the tax return, or not doing it at all, can be costly – which is where our Seafarers Tax Service is so popular!
For most Seafarers, you will spend a lot of time outside the UK, if that is the case, then you may fall under a specific tax scheme called the Seafarer’s Earning Deduction Scheme. If that is the case, you won’t pay any income tax on earnings onboard.
You will have to complete a Seafarers Self-Assessment Tax return to make sure you stay within the rules.
There is a simple three step process to completing your tax return.
Put simply, a Seafarer is somebody who is employed to work on a seagoing ship.
Seafarers Earnings Deduction (SED) is a tax relief available to individuals who work on board a ship outside the UK, as long as they meet certain conditions.
The three basic rules to be eligible for SED, the are:
In addition to the three rules, there are some other coniderations to qualifying for SED
When you are signed up to our Seafarers Tax Service, we can assess if you meet the requirements for the Seafarers Earnings Deduction Scheme (SED). We will submit your SED claim (if eligible) along with your annual return, giving you peace of mind that it is done correctly.
If you are working on a Superyacht, Cruise ship or any commercial vessel and you comply with the Seafarers Earning Deduction scheme mentioned above, then you probably won’t need to start paying off your Student loan.
If you have a Student Loan then please click her for more information.
Seafarers are paid a Gross Salary. Gross means no deductions are taken from your salary (Tax or National Insurance).
If deductions are not taken at source, you are legally required to declare your earnings to HMRC each tax year via a Self-Assessment Tax Return.
As long as you comply with what’s called the Seafarers’ Earnings Deduction Scheme, or SED for short. This is a part of Tax law that applies to Seafarers.
You still need to submit a Self Assessment Tax Return each year but will not need to pay tax on these earnings.
If you are working on a Superyacht, Ship, or Cruise Ship then get in touch or simply sign up and Flying Fish will take care of the rest.
The time limit for submitting a tax return 31st January following the previous 5th April, which gives you nine months to complete and submit the return.
For example, the tax year running 6th April 2022 – 5th April 2023, is due to be submitted by 31st January 2024. It is best to complete your tax return sooner rather than later, as it allows us time to register as your agent, gather the information and prepare your return.
If you work on board a cruise ship, are employed by the vessel, and are a resident of the UK, you may not need to pay tax on your earnings.
The three basic rules to qualify for SED are that you must have spent more than 186 days outside of the UK during a 365-day period, your qualifying period has at least one voyage that begins and ends at a foreign port, and that you are employed to work on a ship.
You won’t qualify for the deduction if you are a Crown employee (for example, a Royal Navy sailor), not a UK resident, or if you are self-employed.
It’s okay, we are here to help. HMRC are always more favourable to people who come forward and admit this instead of burying their head in the sand.
Our tax service is £210 per tax year. When you sign up we will ascertain which tax year(s) are due and if there is more than one, we will work with you to get overdue returns created and submitted.