Seafarers' Earnings Deduction Update for Decommissioning Crew: Petrodec ERDA, Q7000 and Other Vessels

Since the court ruling in Michael King v HMRC on 12 August, SK Tax Service has seen a significant rise in enquiries from seafarers asking whether they can now claim their tax back for the 2025/26 tax year. This update explains where things stand and what we recommend.

What did the court decide?

The court ruled that permanent well decommissioning and plug and abandonment (P&A) work does not fall within the definition of performing a "relevant use". This puts crew members working on decommissioning vessels on incredibly strong ground for a Seafarers' Earnings Deduction (SED) claim.

Why are we pausing final submissions?

Although the ruling is positive, we are temporarily pausing the final submission of these claims.

HMRC has a standard 56-day window, running until early October, to decide whether to appeal the decision to a higher court. Given that HMRC has aggressively targeted decommissioning vessels for several years, there is a very high chance it will attempt an appeal.

Could submitting a claim now cause problems?

Yes. These vessels are now flagged with HMRC, so submitting a seafaring claim through the Self-Assessment system at this stage may trigger an enquiry from the tax office. For that reason, we believe the safest course is to wait until the October appeal window has closed.

What should decommissioning crew do next?

If you worked on the Petrodec ERDA, the Q7000 or any other North Sea decommissioning vessel during the 2025/26 tax year, contact the SK Tax Service team today. We can prepare your claim so it is ready to submit as soon as the position is confirmed.