non resident or off shore account??

harryhound

Yes but special rules apply to "Seafarers":

HMRC seafarer tax changes

Seafarers could face back-tax bills of as much as £46,000 in a clampdown on seafarers' earnings deduction (SED) rules.

HM Revenue & Customs has imposed a hard-line interpretation on the seafarers' earnings deduction (SED) qualifying conditions and is challenging individual claims dating as far back as 2000. SED entitlements have been based being out of the UK at midnight on a relevant date, the tax authority has traditionally used a wider definition but is now arguing for a strict application of being out of the country at midnight.

Shortsea and offshore sectors workers are the most likely to be affected, with claims totalling as much as £400m. Both the HMRC
If you think you might be affected by this please contact Seatax today.
Seatax provide specialist tax services for merchant seamen and seafarers.
website and guidance notes on tax returns give incorrect information.

This web site is worth a visit if only for the fun photos of seafaring c0ck-ups.

http://www.seatax.ltd.uk/newsDtls.aspx?id=54

From the tax need not be taxing department we now have:

(28th August 2009) FURTHER UPDATE ON REVENUE’S DECISION REGARDING RECLASSIFICATION OF SHIPS RELATING TO SEAFARERS EARNINGS DEDUCTION



There has been a decision of the First-Tier Tribunal (Tax Chamber) issued on 18th June 2009. The decision concerns a claim to Seafarer's Earnings Deduction (SED) in Spowage and Others v HMRC. The result of the decision is that some seafarers who were not previously entitled to SED, will be entitled to SED for 2008/09 onwards. The decision results in a relaxation of the rules that previously applied so that some vessels that were previously defined as an 'offshore installation' and now defined as a 'ship'.

Seafarers and Merchant Seaman can contact Seatax for further advice on whether the changes to SED rules effect them.

An extract of the ruling is included below:


“For the purposes of this section a ‘ship’ does not include –

(a) any offshore installation within the meaning of the Mineral Workings (Offshore Installations) Act 1971, or
(b) what would be such an installation if the references in that Act to controlled waters were to any waters.”

Regulation 3 of the 1995 Regulations provides so far as relevant,

“(1) … the expression ‘offshore installation’ means a structure which is, or is to be, or has been used, while standing or stationed in relevant waters … -

(a) for the exploitation, or exploration with a view to exploitation, of mineral resources by means of a well;
(b) for the storage of gas in or under the shore or bed of relevant waters or the recovery of gas so stored;
(c) for the conveyance of things by means of a pipe; or
(d) mainly for the provision of accommodation for persons who work on or from a structure falling within any of the provisions of this paragraph;

and which is not an excepted structure.

(2) For the purposes of paragraph (1) the excepted structures are –

…
(b) a well;
…
(e) a mobile structure which has been taken out of use and is not for the time being intended to be used for any of the purposes specified in paragraph (1); and
(f) any part of a pipeline.

(3) For the purposes of these Regulations there shall be deemed to be part of an offshore installation –

(a) any well for the time being connected to it by pipe or cable;
(b) such part of any pipeline connected to it as is within 500 metres of any part of its main structure;
(c) any apparatus or works which are situated –

(i) on or affixed to its main structure; or
(ii) wholly or partly within 500 metres of any part of its main structure and associated with a pipe or system of pipes connected to any part of that installation.

(4) Where two or more structures are, or are to be, connected permanently above the sea at high tide they shall for the purposes of these Regulations be deemed to comprise a single offshore installation.

James_Trimby

I think there is a lot of confusion here in that there are three states or residence not two. Residence Ordinarily Resident and Domilciled The latter is very hard to change (Lord Ashcroft is NON Domiciled basically started life outside UK) Ordinarily Resident is where you normally reside (so connections etc matter eg houses investments etc) this has some income tax effects and often more important Capital Gains issues. Residence is more technical and meetings dates etc etc (The case mentioned if I remember rightly was partially down to days in country excluded travel days but in his case with private planes etc he managed to be in the uk most the time but technically out of it! Until he lost his case) You can be out of country earning abroad and be free of uk Tax, but need to be out for whole tax year (rather than a year you pick) the days rules applies need to look at specifics (sailors/fisherman get special rules and oil platforms dont generally count as out of uk for tax purposes etc).

As you have seen it is very technical and you need to get good advice as this is too much for a forum ! When you pay your accountant think of the tax you could save! (and as someone mentioned you may be resident somewhere else and that could cost more!)

Cook_County

ballsonyournose wrote: »

I think alot of what's posted is crap to be honest.

Im in the same boat, perhaps literally, and for the past four years classed as Seafarers' Earnings Deduction. I have to give the total amount, and the names of the ships in the ‘Additional information’ box.

The rules are quite complicated, and i dont think they apply if you are on a rig in uk waters. You have to satisfy various rules, essentially be out of the uk more than in.

I have property in the uk, isas etc. You dont have to "sever all ties" to the uk, thats a load.

For me, my employer takes 40% to the taxman every month, and i get a lovely check back from HMRC at the end of the year I know alot of people who use www.seatax.ltd.uk, i dont personally, use a local outfit in Edinburgh. Its worth while to get an accountant to do this, costs me £150 per return.

This complete comment is daft. The previous discussion was asking entirely politely (without rude words) about breaking UK residence - not about the 100% foreign earnings deduction for seafarers which is entirely, entirely different.

jimbms

queen_of_string wrote: »

It seems to matter where the income originates too. I am the sole director of a UK company whilst being non resident. I only spend about 4 weeks in the UK, but as all my income originates in the UK, I am informed that all my earnings will be taxed just the same as if I lived there and used services. It sucks.

Where do you live queen? I am in the Isle of Man and all my income comes from UK companies that I subcontract to and I only pay IoM tax, maybe you would be better subcontracting to your UK ltd as a non UK resident sole trader rather than PAYE to them as IR35 doesnt count for non UK resident subcontractors who do not do the work inside the UK.