Filing Deadline is 31 January 2020
Thinking about filing your tax return before the deadline of 31st Jan 2020 but unsure where to start?
Whether you use an accountant or decide to file your own return, the correct course of action is always to declare your earnings before any authorities ask.
The guide below will help you understand the information and documentation that you will need to prepare your tax return.
Read on to find out more or click a jump menu below to skip to a chapter of your choice:
Have you ever filed a tax return in the past before?
If so, it may be useful to have these available depending on the period of filing.
You will need your national insurance number and your UTR number (tax ID).
If you do not have a UTR number then an accountant can apply for one for you.
How long have you been working as a seafarer?
HMRC have a 4 year audit period.
This should be considered when deciding how many years returns to complete to achieve a position of tax transparency in the eyes of HMRC.
How many days have you spent in the UK?
Whilst there are other rules to consider, the most important one to comply with in order to qualify for the SED is the limit of 183 days spent onshore in the UK in any rolling 365 days.
Although it is not necessary to provide at the time of submitting a tax return, it would be prudent to keep records to prove where you were during any 12 month period.
This can be supported by records of air tickets, travel vouchers, hotel bills, visas and passports, and your seafarers discharge book.
Try using our free online seafarers tax days calculator.
It's quick and easy to use and will give you an instant answer as to whether you qualify under the seafarers earnings deduction.
What currency were you paid in and how much?
Although it is useful to have payslips, they are not mandatory when filing a tax return.
The objective is to report your income accurately and should include salary, tips and bonuses, plus the name of your employer and the vessel you worked on.
Have you received any income from land based employment?
Payslips, P60 or P45 will determine the tax paid on this and should be included as part of your return as a seafarer.
Do you receive any income from savings, investments or pensions?
It is important to include all income in relation to these as they may be subject to UK tax.
Have you ever used any cryptocurrency?
Cryptocurrency is an investment like any other and will be treated as such when assessing any gains, and therefore must be declared within your tax return.
Do you have any properties you rent out?
You will need to include any rental income from properties you own anywhere in the world.
For UK rental income, provided you have not exceed your personal allowance you will not be liable for tax on this.
Certain expenses can be offset so it is important to keep evidence of costs in relation to the property.
This includes loan interest, insurance payments, rates and ground rent, repairs and maintenance, legal and management costs along with other allowable expenses.
What Will I Need?
Details of income earned during the tax year. This should include any salary, bonus and tips.
Investment & Savings
If you are receiving any interest or dividends, this is counted as earnings and must be declared.
Rental Property Details
You will need to declare all rental income but this can be offset against mortgage interest payments and expenses as detailed above.
Number of Days Spent in the UK
You can use your discharge book, passport and flight details as evidence should you ever be asked for it.
National Insurance Number
You'll need this to be recorded on your return before filing.
Any other items that are helpful or necessary to your personal situation.
This information will help you prepare the information needed for an accurate tax return, and have the evidence available should HMRC request to see it.
This guide will help you get the information you need to file a tax return in the UK however there may be other things personal to you that you feel you need to include.
It is essential in a tax return to declare any earnings and anything you get a return on.
If in doubt, speak to an accountant.
Ready to file your tax return with Marine Accounts?
Then click here to get started by using our online service.
Speak to Us or Comment!
If you have concerns about completing this year's self assessment tax return, we can help review your situation and offer advice on your current tax position. Alternatively, let us know what you think in the comments section below, or get in touch with us.
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Any advice in this publication is not intended or written by Marine Accounts to be used by a client or entity for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party matters herein.