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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Seafarers’ Earnings Deduction: Crown servants

Section 384 ITEPA 2003The definition of employment as a seafarer in Section 384(1) specifically excludes those in Crown employment. Section 384(2) defines Crown employment as meaning employment under the Crown:

  • which is of a public nature and
  • the earnings from which are payable out of the public revenue of the United Kingdom or of Northern Ireland.In consequence, civil servants and members of the Armed Forces who perform duties on ships are not entitled to the deduction as they are not employed as a seafarer for the purposes of Section 384.

The creation of Government agencies and non-governmental bodies has caused some difficulty in determining whether groups of employees are Crown servants. In cases of difficulty ask the organisation for a copy of it’s foundation document. This usually specifies the tax status of the organisation and its employees.

Advice on cases of difficulty may be obtained from the Marine Unit, South Wales Area, Cardiff (Compliance) Team – see EP8312 and8313