Clampdown by Cardiff on Seafarer's Earnings Deduction (SED) claims
There has been comment that there has been a change in the way in which SED claims are treated by the Revenue. It is being claimed that the Revenue have changed their view on what constitutes a day out of the UK. I can tell you quite categorically that there has been no change at all, it is, and always has been, the fact that a qualifying day for tax purposes is one in which, at midnight, you are outside the UK, that is outside the twelve mile limit.
As a concession the Revenue will accept that where you are leaving the UK on a voyage to a foreign port, and actually arrive at the foreign port, then as soon as you leave the UK port you are accepted as being outside the UK. Similarly, if you are flying from the UK your time of departure is taken as the scheduled time of departure for the flight you are on.
It follows on, therefore, that you can have a situation where two ships leave a UK port at the same time, one going to a UK port and the other going to a foreign port, and for the first ship it is not a qualifying day but it is for the second.
This is why we always ask our clients to provide evidence of days outside the twelve mile limit when clients are working in the North Sea or Irish Sea. It is not possible to use a blanket statement saying that, as long as a vessel sails by a certain time it will be regarded as being outside the twelve mile limit at midnight.
When the rules were changed back in 1991 SK Tax contacted the Revenue for clarification of this and this is the interpretation we were given, and the one we have worked to ever since. Also, in 2001 a letter was issued to all Tax Advisory services re-stating this interpretation, so there can be no real excuse for not understanding this point.
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2010 Tax returns
We are now in full swing with the submission of tax returns and, so far, all seems to be going well. Refunds are coming through reasonably quickly, certainly a lot better than last year! Having said that there still seems to be a wide variety in the time the Revenue are taking to issue the cheques so the watchword is patience, it will turn up eventually!
Also, as we are extremely busy at this time of year, could we please beg your indulgence when ringing the office. Very often the tax adviser you wish to speak to is either on the phone to, or seeing a client in the office. Unless it is absolutely vital that you speak to your adviser it would help us enormously if you could just leave a message with the girls on reception.
E-Mail Scam
We are now aware that there are a lot of e-mail scams going round, and the latest one is where you receive an e-mail purporting to be from the Revenue informing you of a tax refund due to you. Please be advised that the Revenue NEVER contact you by e-mail regarding refunds, therefore please ignore any such communication. They are asking for your bank details to pay you the "refund" so be very wary of these.
Seafarers Tax News Archive
