Seafarer's Tax

Tax Aid for Seafarer’s - the Foreign Earnings Deduction (FED)

The Seafarer's Earnings Deduction (SED) is also known as Foreign Earnings Deduction (FED). This is a tax relief claimable by UK resident employees working on ships: their earnings are not taxable in UK, so seafarers can claim a full tax refund.

Q: How do I know if I qualify for SED?
A: You must meet three basic criteria:

1. Qualifying vessel: you must work on a "ship". There is no strict definition of a "ship" but "offshore installations" (e.g. rigs) are specifically excluded.

2. Qualifying period: you must have completed a period of at least 365 days employment as a seafarer, beginning and ending with a period abroad (offshore work or holiday). Note: you must NOT spend 183 or more continuous days in the UK and you must NOT break the half-day rule: days spent in UK should be less than 50% of the total qualifying period.

3. Qualifying voyage: you must visit a valid foreign port. Each employment in each tax year must include at least one voyage that begins or ends at a foreign port (voyages to installations/rigs qualify too if they are located outside UK).

Q: How can I claim?

A: To claim a FED (SED) refund DOWNLOAD YOUR FORMS HERE