The process of filing a tax return under the Seafarers Earnings Deduction

  • Patrick Maflin
    Patrick Maflin

At Marine Accounts we work hard to ensure that the process of completing your returns runs without a hitch. We have a unique approach and do require hard copies of documents, as we are happy to accept attachments or scans this in itself affords enormous time saving. There is a clear 3 Stage process to completing your returns which I will now explain:

Stage 1

First we must apply for a Unique Taxpayer Reference number for you do that we can set you up under the Self Assessment scheme and claim the Seafarers Earnings Deduction. This number is generated by HMRC. It will be delivered in the post to your address in the UK and takes 3 weeks on average to arrive.

We require you to send us a copy of your passport or driving license so that we may qualify you under money laundering compliance. This can be a scan or JPEG.

However if the personal details that you provide us do not match those held on record by HMRC they will request that you contact them to amend them. Please be advised that we cannot do this for you as we are not allowed to change your personal information.

Once you have received this number in the post you will need to send it to us so that we can complete your return.

Stage 2

The bonus is very much on you at this stage. We will provide you with a pro-forma sheet which neatly details all of the information that we require to complete your return. Please see a break down below:

-Number of Days in the UK

This is a tally of the number of days that you have spent in the UK in a given tax year (April – April). A day in the UK is when you are still there at midnight.

-Statement of Income

We require you to declare how much money you have earned in the tax year. You can alternatively provide bank statements if you are unsure.

-Name of Vessel

This is simply the name of the vessel you work on.

-Name and Address of Employer

It is important under the guidelines provided for the SED that we provide this information.

-Details of any investments or rental income

Please ensure that you provide details of all your investments and income as it is important to declare all of this income.

Once we have received all of the information above on your signed pro-forma we will then begin to draft your return.

Stage 3

Once we have completed your return we will send you a copy to review. We do not expect you to check that we have made the right calculations but we want you to approve that the amount we are declaring and that your details are correct. We will then submit your return upon your authority and provide you with a submission receipt. You must then sign the return and scan it back to us.

It is unlikely upon submission that you will hear anything from HMRC if you do not owe tax. If you do owe tax you will receive a request for payment shortly after.

The process of completing a tax return takes between 6 – 8 weeks on average but largely depends on how quickly HMRC send out your UTR number and you return your information.