Seafarers Earnings Deduction – Are you in or out?

BLOG24th May 2018

International payroll and double taxation blog image

Following on from our blog in October 2017 we have been approached by many seafarers (both UK and EEA resident) who have had disputes with HMRC regarding their Seafarers Earnings Deduction (SED) claims. HMRC are arguing that many claims have been completed using Discharge books alone with no consideration has been given to the other qualifying conditions.

As explained in our previous blog, there are very strict requirements in order to qualify for an ‘SED’, and with the downturn in the Oil and Energy sector, many individuals who would have had qualifying claims previously now no longer meet the requirements.

The main issue being that these vessels are not outwith the 12 mile limit of the UK Continental Shelf or they are not stopping at an overseas port and carrying out duties.

Given that individuals who meet the criteria for the ‘SED’ can claim back up to 100 percent of the UK PAYE that they have paid throughout the year, it is not surprising that HMRC are looking into these claims in more detail than ever before.

If you are unsure as to whether you may be eligible to claim the ‘SED’ or you require any assistance or further information on the ‘SED’, please do not hesitate to contact Isla Mayfield ( or your usual AAB contact.