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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
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Seafarers’ Earnings Deduction: anti-avoidance legislation: associated employments

Section 380 ITEPA 2003

A seafarer may have two or more associated employments but only perform duties wholly or partly outside the United Kingdom for one of them. There may be an attempt to inflate earnings from the relevant employment. Earnings from the other employment(s) may be decreased or left as they were.

Employments are associated if they are with the same person or with persons associated with each.

  • Companies are associated if one of them has control of the other or both of them are under the control of the same person or persons. Control has the same meaning as at Section 416 ICTA 1988.
  • Individuals or partnerships are associated with companies or other partnerships if one of them has control of the other or both of them are under the control of the same person or persons. Control has the same meaning as at Section 995 ITA 2007.

Section 380(2) sets out factors to consider. These are listed as EIM33070. Do not challenge only on the grounds that earnings paid in respect of the relevant employment are higher. There may be a good commercial reason for rewarding a seafarer at a higher rate for working part or all of the time abroad.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)