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Tax Returns- Why should I bother?

Authors
  • Patrick Maflin
    Name
    Patrick Maflin

Tax is still an ugly three letter word in yachting and for many it still causes much confusion. There are still those who choose to ignore it. The reality for U.K. Yacht Crew is that it is now easier to address the problem than continue to avoid it.

Below are the reasons why you should file a tax return and also a list of FAQs:

Why should I declare my income?

  • Automatic Exchange of Information; your financial information is now being shared between governments and tax authorities.
  • CRS & FATCA; All banks are now required to have the tax & residency information of all account holders on record.
  • Thinking of getting a mortgage? Most lenders require proof of earnings in the form of tax returns.
  • I don’t owe tax so why do I need to file a tax return? You may not owe tax, but if you are still required by law to declare your income.

    • Will I have a huge tax bill or receive penalties?

  • Most UK yacht crew qualify for the Seafarers Earnings Deduction which is a 100% tax exemption meaning you will pay 0 tax on your income from yachting.
  • You won’t have to pay the tax and then claim it back.
  • You will not receive any penalties if you have not previously filed a tax return.

    • If you would like more information about bringing your tax affairs up to date get in contact.