Posted by Tax Innovations on 01 Nov 2011

Seafarers UK Tax Relief

HM Revenue and Customs (HMRC) has announced that they intend to extend the Seafarers UK Tax Relief with Seafarers’ Earnings Deduction to European Economic Area (EEA)/European Union (EU) resident seafarers who have paid UK tax from 2011 – 12.

The Pre-Budget report notice 23 said that once qualifying conditions are met, the claim should be made upon the new form R34M (SED) and will apply for the tax year 2011 – 12 onwards.

Under certain circumstances, the Seafarers’ Earnings Deduction may be claimed by seafarers who are not resident in the UK or EEA/EU, but have however paid UK tax on earnings as a seafarer. These claims should also be made on the R34M form and not via a self-assessment tax return.

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