In this section:
If you're an employee and work at sea, you may be able to reduce your tax bill by getting 'Seafarers' Earnings Deduction'.
On this page:
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 the section below 'How to calculate the deduction'.
Find out if you are resident or ordinarily resident in the UK (PDF 329K)
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.
Get Help Sheet HS205 (PDF 57K)
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 & Customs (HMRC) may want to check your tax return so you'll need to keep details of:
If there's any doubt HMRC will contact your employer for details of the ship's voyage and crew.
If you are ordinarily resident in the UK, you'll have to complete a Self Assessment tax return, including the supplementary Employment and Additional Information pages - find out more by following the links below.
Find out about completing a Self Assessment tax return
Find out about completing your Self Assessment tax return online
Get a Self Assessment tax return
If you are not resident in the UK but you are a resident of an EEA State (other than the UK), from the tax year 2011-12 you may be entitled to Seafarers' Earnings Deduction. You should claim using form R43M(SED) Repayment Claim - EEA Resident Merchant Seafarer. You should not use a tax return to claim Seafarer' Earnings Deduction.
The time limits for claiming Seafarers' Earnings Deduction are shown in the table below.
| Tax year | Tax year ended on | You must claim by: |
|---|---|---|
| 2007-08 | 5 April 2008 | 5 April 2012 |
| 2008-09 | 5 April 2009 | 5 April 2013 |
| 2009-10 | 5 April 2010 | 5 April 2014 |
| 2010-11 | 5 April 2011 | 5 April 2015 |
If you're not resident in the UK and not resident in an EEA State (other than 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.
Go to form R43M Repayment Claim
If you need help or advice, you can call the Seafarers Helpline on Tel 029 2032 5045. It's open from 8.00 am to 4.00 pm, Monday to Friday.
