Seafarer’s Earnings Deduction is a tax relief that allows people who work at sea to claim a 100% tax exemption on their foreign income.
To get it, you must have:
You’ll also need a few documents like:
To claim the Seafarer’s Earnings Deduction, you’ll have to file a Self Assessment tax return within four years of the end of the tax year in which you earned your income.
You can also ask your employer to pay your salary without deducting tax.
In this case, you’ll get something called an NT tax code, but HMRC won’t issue one until after you’ve claimed Seafarers’ Earnings Deduction at least once.
In the UK, you must keep your tax records for at least six years from the end of the relevant tax year. Accounting software can help you to digitally store your records without taking up space in your office!
The HS205 Seafarers’ Earnings Deduction form allows you to calculate your eligible period and decide whether you qualify for the relief. For more information, visit the HMRC website.