Tax Services and Advice for Yacht Crews

Yacht crews tax services

Many members of the yachting industry have been operating for years without declaring income to any government tax body, on the assumption that they do not reside in any particular country.

HM Revenue & Customs have, for many years, been implementing double taxation agreements with many countries to ensure you do not pay tax in two countries. This means if you are a UK resident you are liable to tax on your worldwide income each year. It does not matter whether or not you bring the foreign income into the UK.

Put simply you must be liable to tax somewhere. However, if you are a UK resident you may be eligible to claim the Seafarer’s Earnings Deduction.

Professional yacht crews who could be caught include

• Captains
• Officers
• Any personnel working on board a yacht

The Seafarers’ Earnings Deduction rules are the same for all. Some pointers:

• It is a complex rule and we have seen many incorrect interpretations over the years.
• It is not simply a straightforward day count. The half rule which governs this claim has to be taken into consideration.
• If the Revenue has refunded your tax, it does not necessarily follow that they have checked and agreed your claim. You may still be subject to a Revenue investigation.
• Keep supporting documentation indefinitely: discharge book, certificates of discharge, sea service testimonials and flight documentation.

Seatax have been providing tax services for yacht crews for many years and are highly experienced in bringing yacht personnel back into the tax system smoothly and making sure there are no problems in the transition. Every individual’s case is different, so we do not approach HMRC until we have checked your personal requirements. Only when you are satisfied do we register you for Self Assessment in order to bring your tax affairs completely up to date.