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Taxionary

Seafarer's Earnings Deduction

[ˈsiːˌfeərəz ˈɜːnɪŋz dɪˈdʌkʃᵊn]

Term

Summary:

Seafarer's Earnings Deduction is a tax relief scheme allowing qualifying seafarer's to claim 100% tax exemption on foreign income through a Self Assessment.

More detail:

Seafarer's Earnings Deduction is a tax relief scheme in the United Kingdom that allows an individual that has worked on a ship, worked outside of the UK for a minimum of 365 days, and is a tax resident of the UK or the European Economic Area to claim a 100% tax exemption on foreign income.

To claim this tax relief, individuals must have travel receipts, passport, visa, a seafarer's discharge book, and logs of the ships they have worked on.

A Self Assessment can then be filed. After claiming Seafarer's Earnings Deduction at least once, HMRC can issue an NT Tax Code to the individual, which will allow an employer to pay their salary without deducting any tax.

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