claiming tax back if i work on an oil rig?

sarahk100574

alex8525 wrote: »

True, but I use a Marine Tax accountant to handle my SED claims, and have found them very helpful indeed. Not only do they advise me on SED matters, but have helped me claim all other manner of tax reliefs I did not even know I was eligible for. Most also offer in the price a full tax review of Wife / Partner to see if they can reduce their tax liabilities or resolve any issues. I also find it comforting to know I have a buffer between me and the tax man!

I did approach local accountants, however they all advised me to deal with specialist firms such as those mentioned, and I was also told that local accountants probably couldn't match the fee's of the specialists.

Yes granted using a tax agent does involve an initial outlay, but when you consider the multiple thousands of pounds they can recover, coupled with any reduction in tax liability they may be able to arrange, I consider that to be an investment, not expense.

yes, but you wouldn't assume you need a specialist would you?? SED is very simple stuff in terms of what is required once eligibility criteria have been established.... only mentioned this as this is an MSE forum, surely sending OP for specialist help without knowing the full details is the opposite of MSE as said specialists are usually charging higher fee's for their superior knowledge in the field. In my experience, many SED claims are simple tax returns. The OP could easily file himself once he knows if he is eligible.

Also, not sure what you mean by the above in red... the 'reduction in liability' is 'the recovery of pounds'... your use of the words coupled with suggests that you think there may be more to an SED claim than there actually is! For example, an SED claim is a 100% tax relief so the fact that they are finding 'all other manner of tax reliefs' for you is irrelevent... you can have no more discount than a 100% relief... any other work finding you 'other' discounts is a nonsense.

partan

sarahk100574 wrote: »

Hi haggis,

Its not a loophole anyone has found... what your friend is probably referring to is Seafarers Earnings Deductions (referred to as SED usually).
It is a 100% deduction of earnnings for people who meet the correct criteria. (seafarers)
Some rigs are eligible, some aren't. It is largely dependant on whether you are based on an off shore installation (not eligible for SED) or a ship (vessel which can propel itself under its own steam - is ok for SED). For instance, some exploration rigs based on norwegian shelf, and moved occaisionally do qualify, but north sea oil rigs do not usually qualify. I have seen several cases where almost permanent installations have qualified, so defo worth checking on HMRC website for guidlines re your own rig.

At pluto - seems too good to be true, but in this case is 100% legitimate way of receiving a 100% refund of paye for people meeting the criteria. Pretty easy to do if you work at sea... I submit lots of these claims each year successfully through my work as an accountant.

At Pam - if your OH works on a rig and HASN'T heard about SED i'd be very suprised!!;)

what kind of rig can qualify, given this from HMRC?

The word, ship, is not defined in tax law, but ‘offshore installations’ used in
the offshore oil and gas industry are specifically identified and are not
regarded as ships for the purposes of the deduction. The following list of
offshore installations is given as a guide only:
• fixed production platforms
• floating production platforms
• floating storage units
• floating production storage and offloading vessels (FPSOs)
• mobile offshore drilling units (drillships, semi-submersibles and jack-ups)
• flotels.
Any vessel engaged in exploitation of mineral resources by means of a well
whilst standing or stationed in any waters, is an offshore installation.

sarahk100574

partan wrote: »

what kind of rig can qualify, given this from HMRC?

The word, ship, is not defined in tax law, but ‘offshore installations’ used in
the offshore oil and gas industry are specifically identified and are not
regarded as ships for the purposes of the deduction. The following list of
offshore installations is given as a guide only:
• fixed production platforms
• floating production platforms
• floating storage units
• floating production storage and offloading vessels (FPSOs)
• mobile offshore drilling units (drillships, semi-submersibles and jack-ups)
• flotels.
Any vessel engaged in exploitation of mineral resources by means of a well
whilst standing or stationed in any waters, is an offshore installation.

1) certain exploration rigs currently residing on norwegian shelf
2) the fixed dredging rigs currently on operations in SE Asia

Off the top of my head I can't think of any other rigs currently fully eligible for SED (from our client base). But will that do for now??

The OP gave very little by explanation and I think my answer clearly states that he must check with HMRC. But, that being said, there is no point on an open forum of categorically stating that rigs/installations do not qualify as it simlpy isn't true... I was only trying to balance the first answers which came back as if wasn't true that someone can in fact claim all of their tax back in this way at all.... clearly misguided and totally not helpful for anyone searching later on imo!

partan

ah right, i thought platforms were completely out of it now. am well aware of the big grey area that the hmrc have with well intervention / dive / construction vessels.
you'd think it'd be easier for them (and us) if they came up with a simpler definition of what a ship actually is.

haggis1978

hello folks, i think you have all confirmed what i thought to be true. it is a scam and the people that are claiming are just hoping they fly under the radar and dont get caught. It is a fixed production platform i'm on so have no real claim to the tax rebate bah humbug

Mikeyorks

Back in March 2011 the 'Office of Tax Simplification' included this, regarding SED, in a wide ranging review of 'Releifs'.

There is clearly scope to simplify the operation of the relief. Such simplification might also target the relief more tightly. The particular areas that we have suggested are based on recommendations from stakeholders and include which individuals serving on which type of vessel should be eligible for the relief. This could be done by:

• modifying the legislation so that it is dependent on the work performed by an individual;

and

• possibly the type of vessel served on. Representations have been made that those claiming SED based on oil related platforms should be excluded from the regime and that this could be achieved by excluding vessels that do not have a designated speed of at least 10 knots.