Seafarers Earning Deduction Rules

100% Seafarers’ Earnings Deduction and non-residency

You will probably have been aware of many conflicting ways in which you can qualify. Rumours are plentiful and everyone has their own ideas. Through talking to seafarers we have seen many incorrect interpretations used by individuals concerning this complex rule, and in our experience they have proved to be very costly. Remember it is not as simple as purely doing a “day count”: the half rule also has to be taken into account.

Since 2004, the Revenue has restricted further those who are entitled to the relief by re-classification and not accepting offshore installations as “ships”.

Many people believe that because the Revenue have refunded their tax they have actually checked and agreed the claim for foreign earnings deduction. This is not necessarily the case. The problem arises when the Revenue decides to check on what grounds you have made the claim. The evidence of the claims — airline tickets, hotel receipts and so on — needs to be kept indefinitely. The Inland Revenue can review the history of a claim at any time and they will require adequate proof of time spent abroad.

Can you therefore be sure that the claim you make will not be investigated by the Revenue at a later date, even though they may appear to have passed your claim initially?

As we are constantly reviewing Revenue interpretations of the seafarer earnings deduction rules, make use of our experience in this field to handle your claim. Learn more about Seatax, why you should use us, or contact us.