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HMRC internal manual

Employment Income Manual

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Seafarers’ Earnings Deduction: entitlement to the deduction for non-UK resident seafarers: 2011/12 onwards

Section 378(1)(a) ITEPA 2003

From 6 April 2011 entitlement to seafarers’ earnings deduction (SED) is extended to seafarers who are resident for tax purposes in an European Economic Area (EEA) or European Union State, other than the United Kingdom. EEA States comprise all of those states that are part of the EU, plus Iceland, Liechtenstein and Norway.

As non-UK residents, these EEA/EU resident seafarers are only taxable in the United Kingdom (which for the purposes of this deduction includes the territorial sea within the 12-mile limit and designated areas of the United Kingdom Continental Shelf) on earnings for seafaring employment duties performed in United Kingdom waters.

For 2011/12 onwards EEA/EU resident seafarers who are not UK resident, are entitled to claim the deduction but only against their earnings as a seafarer in United Kingdom waters and only if they meet the satisfying conditions for the deduction - see EIM33001.

For retrospective claims to SED for years prior to 2011/12 see EIM33011.

How EEA/EU resident seafarers who are not UK resident should claim the deduction

United Kingdom resident seafarers claim the deduction through submission of a Self Assessment Tax Return.

Non-UK resident seafarers should not submit a tax return to claim the deduction. Instead a Form R43(M)(SED) should be completed and returned to HMRC. This form may be downloaded from .

The following documents should be provided in support of a claim on this form -

  • a calculation or breakdown of days spent in the United Kingdom during the period of claim, including dates and air tickets or other travel vouchers confirming this information;
  • copies of the relevant pages of a Discharge Book or similar documents, confirming periods of duty at sea during the period of claim;
  • copies of Draught of Water and Freeboard Pages, Day Logs or Voyage Reports for each vessel on which the seafarer was employed in the period of claim;
  • a copy of Form P60 (End of Year tax certificate) for the year of claim;
  • if employed on a ferry, copies of monthly Duty Rostas and qualifying timesheets, showing arrival and departure times and dates; or
  • if employed on a cruise ship, copies of the itinerary of each cruise in the period of claim.

Non-EEA/EU resident seafarers

Non-EEA/EU resident seafarers are not entitled to claim the deduction.