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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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Seafarers' Earnings Deduction: entitlement to the deduction for non-UK resident seafarers: years prior to 2011/12: time limits for claims

Section 378(1)(a) ITEPA 2003

Statutory rules for 2011/12 onwards provide for European Union or European Economic Area resident seafarers to claim seafarers’ earnings deduction (SED) - see EIM33010.

Entitlement to SED in years prior to 2011/12

EIM33011 explains the change of practice to allow EU/EEA seafarers to submit claims to SED.

EIM33012 explains how to submit claims to SED for relevant years prior to 2011/12.

EIM33013 lists the evidence required to support a claim to SED.

Seafarers in Self Assessment - Schedule 1AB(3)(1) TMA 1970

Statutory time limits for taxpayers within Self Assessment (SA) determine the years for which retrospective claims for relief for overpaid tax may be submitted to HMRC.

Since April 2010 the general rule is that a claim for relief for overpaid tax must be submitted within four years after the end of the relevant tax year. For example, claims for a refund of tax fro 2007/08 must be made on or before 5 April 2012. If a claim is made on or after 6 April 2012 and before 6 April 2013, the earliest year in respect of which a seafarer would be able to claim a refund of tax is 2008/09.

Thus the statutory time limits require any seafarer who wishes to make a claim for a refund of tax for the tax year 2007/08 to submit the claim to HMRC by 5 April 2012.

However as HMRC only announced in March 2012 that it would accept claims for a repayment if tax if all the relevant conditions were satisfied, using its collection and management powers, it has decided to extend the deadline for accepting claims for the 07/08 tax year to 31 July 2012. If a seafarer in self-assessment therefore wishes to make a claim for a refund of tax for the tax year 2007/08, he or she must ensure the claim is made by 31 July 2012. All other statutory time limits remain unchanged.

Seafarers not in Self Assessment

Transitional rules to the new time limits introduced in April 2010, allow taxpayers who wish to claim a repayment but were not within SA in the relevant tax year, more time than those in SA.

Non SA taxpayers (and those in SA who were not given notice to file a return within one year of the end of the year of assessment) have until 31 March 2012 to make a claim for relief for overpaid tax in 2006/07 and until 5 April 2012 to make a claim for relief for overpaid tax in 2007/08.

Again, as HMRC only announced in March 2012 that it would accept claims for a repayment for tax if all relevant conditions were satisfied, it has decided to exercise its collection and management powers and extend the deadline for accepting such claims to 31 July 2012. A seafarer not in self-assessment who therefore wishes to make a claim for a refund for tax for the tax year 2006/07 and 2007/08 has until 31 July 2012 to submit his or her claim. All other statutory time limits remain unchanged.