International Payroll – Seafarer’s Earnings DeductionFriday, December 18th, 2009
The Seafarers’ Earnings Deduction can provide 100% UK tax relief on earnings from carrying out duties as a seafarer wholly or partly outside the UK, during an eligible period. One of the qualifying conditions for the deduction is that the claimant must be ordinarily resident in the UK.
The 2009 Pre-Budget Report announced that this condition will be extended so that seafarers who are EU or EEA residents can claim the deduction on their earnings as a seafarer that are liable to UK income tax. There are no other changes to the provisions for Seafarers’ Earnings Deduction.
Legislation to extend entitlement to the deduction will be included in 2010 Finance Bill, ensuring the provisions are compatible with the EU Treaty.
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