Seafarers’ Earnings Deduction: the year the deduction is given
Sections 378 and 379 ITEPA 2003Where a seafarer is entitled to the deduction, it is given in the year the earnings are received.
The deduction is given in calculating the net taxable earnings for earnings that are taxable under Section 15 (or Section 21 before 6 April 2008) ITEPA 2003. You need first to identify the year that the earnings are for; put another way, the year in which they were earned. If in the earnings year the earnings attracted the deduction then the deduction tracks through to the year the earnings are received if it is different.
In the case of seafarers who earn and receive their earnings in the same tax year the position is straightforward. However, some earnings may be paid after the year in which they were earned and they may be mixed up with other earnings of that later year that do not qualify for the deduction.