Working on a ship.

If you live in the UK and work at sea, tax can feel especially hard to get your head around. There is help built into the system. And you don’t have to work it all out alone.

The Seafarers’ Earnings Deduction.

There’s a special tax relief for people who normally live in the UK and work on a ship, called the Seafarers’ Earnings Deduction. If you qualify, you won’t pay UK Income Tax on the earnings you make while working onboard a ship.

To get the deduction you must have:

• worked on a ship
• worked outside of the UK long enough to qualify, usually a minimum of 365 days
• be a resident of the UK (or an EEA state)
  
  

Who can claim the Seafarers’ Earnings Deduction?

The deduction applies to people working onboard a ship, including:

• Cargo vessels
• Tankers
• Cruise liners
• Passenger ships

Your job doesn’t have to be what you’d think of as “seafaring”.

You might be:

• A cook
• A musician or entertainer
• Part of the hospitality or service crew

If you’re employed onboard a ship, you may be able to claim – as long as you meet the conditions.

Who it doesn’t apply to.

The Seafarers’ Earnings Deduction doesn’t apply if:

• You’re a Crown Servant, such as a member of the Royal Navy
• You work on oil rigs or offshore installations. These don’t count as ships for this type of tax relief.
  
  

The main conditions.

To qualify, you must be resident in the UK or an EEA state for tax purposes.

Your earnings also have to relate to a 365-day period. You don’t have to stay at sea for a full year without coming home, but the time you spend back in the UK during that period matters.

The 365 days don’t have to match the tax year.

An example.

Let’s say you start working at sea on 1 January and finish on 31 December. That’s your 365-day period.

You can return to the UK during that time. But if you spend too many days here, you may not meet the conditions.

That’s why it’s important to keep careful track of:

• When you’re at sea
• When you’re back in the UK

If you’re unsure whether your time in the UK affects your claim, that’s very common. This is one of the areas people struggle with most. Here is more information about the Seafarers Earnings Deduction. 

If you’re not a UK resident.

If you’re not resident in the UK but UK Income Tax has been taken from your seafaring earnings, you may be able to claim a refund.

This applies even if the tax has already been paid.

Where to find more help.

There’s detailed guidance on the government website about the Seafarers’ Earnings Deduction and refunds for non-resident seafarers.

If you’re feeling unsure, or worried you’ve paid the wrong tax, you’re not alone.
These rules are complicated. And small details matter.

If you need help understanding your position or sorting out a tax problem, we’re here to support you and take the pressure off.