TTM15300 - Background Material: Seafarers

Income tax liability of seafarers

The tax position of seafarers can be complex. The following pages are intended to bring together an outline of personal taxation issues for the information of inspectors dealing with the corporation tax returns of shipping companies. This guidance does not replace that found in the EIM or NIM.

Seafarers, companies and employers should refer to the guidance found in Employment Income Manual and Specialist Marine Team (TTM15410)

Introduction

The word ‘seafarer’ has a special meaning in relation to the Seafarer Earnings Deduction (SED). Otherwise the word has its normal, everyday meaning. Although ‘seafarer’ is used in the context of income tax, the word ‘mariner’ is used in National Insurance legislation. The words ‘seafarer’ and ‘mariner’ are generally interchangeable.

The charge to tax

The general earnings of a UK resident employee who is a seafarer will be chargeable to UK income tax under Section 15 ITEPA 2003 (TTM15320). Seafarers who are resident but not ordinarily resident are taxable under S15 ITEPA for UK duties, and S 26 for non UK duties but only to the extent that the earnings are remitted to the UK (TTM15330)

For the meaning of “general earnings” see EIM42201.

An overview of the charging provisions can be found at EIM40003 

References