Seafarers Earnings Deduction not be affected
UK seafarers have been reassured that their Seafarers Earnings Deduction (SED) will not be affected by a new residency test introduced by the HM Revenue and Customs.
HMRCsStatutory Residence Test(SRT) introduced in April last year will be applied from the tax year 2013/14 onwards, andrevised guidance has been also been published.
Nautilus senior policy advisor Peter McEwen said: Most UK members will be tax resident in the UK in any event and few will therefore need to use the SRT.
The important point is that the Seafarers Earnings Deduction is not affected by this. Being tax resident allows the SED to be claimed so the actual tax due (which might be zero) is not affected.
Source: Nautilus Int
