Quick SED Question

[CharlieDelta]

For those in the know...

I have a valid SED claim that ends on 9th Jan this year, do I have to wait until my tax return to get the refund? Would ask Seatax but they take a day or two to reply and I know how quick we are on here!

[Chiefy]

you can only claim whats on a P45 or P60...so it depends......if the claim is up to april 5th last year and you only just worked it out, then you can claim it now, if though the actual claim is valid now then you have to wait for the p60 to come through as thats the reciept for the tax you paid...so best thing....phone seatax for valid and accurate response

Tax is never quick or simple

[CharlieDelta]

Yeah it's from January to January.

Thanks though, will send them an email to be sure. Not the end of the world if I have to wait but y'know. :-)

[Chiefy]

Oh aye..we know.....though I am happy to be proven wrong, I was told that the first claim is the trickiest and after that you can place the claim at anytime for the anniversary BUT you only get the previous years back...if you get me, so after this year your anniversary is January so you claim back upto the previous April..but once rolling like that it become an annual event so it's easy :0

However the easiest way is not to pay it in the first place

[CharlieDelta]

Tax gives me headaches...

[Steve]

Out of curiosity, what income are you paying income tax on? I keep reading on here that cadet training allowances are "tax free". Do Carnival pay a taxable salary?

If you haven't already submitted your tax return for tax year 2010-2011 then you can do so for the portion of the claim period that falls within that tax year as soon as you have a valid claim. If this is your first time submitting a self-assessment HMRC may try to fine you for late filing of a return (I don't remember the cutoff date but ISTR January or December), but if you explain that your only reason for filing was a SED claim they will back off. If you have already submitted a tax return for 2010-2011 you'll have to revise it to include the SED claim. You'll have to wait until April of this year to claim for the portion that falls within tax year 2011-2012. Are you sure that your claim period will not be extended at all this year?

you can only claim whats on a P45 or P60...

If it's the start or end of a claim period spanning multiple tax years you'll want to use your payslips to establish what tax you paid each month of the claim period within the relevant tax year and for first or final month work out a daily rate pro-rata.

My payslips summarise tax paid for the whole of the tax year to date so it's not necessary to wait for a P60, March's payslip will do.

Tax is never quick or simple

My tax return last year took 30 minutes, was filed within a couple of days of the end of the tax year (as soon as the forms were available), and I had my refund within two weeks. Quick and simple!

[CharlieDelta]

I've been self-assessed before but didn't need to file for 10/11 as that entire year was PAYE only. I think my claim will probably break since I'm not at sea again until April, and I haven't been at sea since May (have met requirements for time out of the country though), so might end up as a Jan-Jan claim then Apr-Apr. I definitely feel a headache coming on!

Some companies deduct tax from cadets, some don't. Something to do with having a contract of employment as well as a training agreement I believe.

[Steve]

I was told that the first claim is the trickiest and after that you can place the claim at anytime for the anniversary BUT you only get the previous years back...if you get me, so after this year your anniversary is January so you claim back upto the previous April..but once rolling like that it become an annual event so it's easy :0

I don't quite understand what you are saying here, but "rolling" may not apply to cadets who spend a bit too long in the UK to have a secure indefinite rolling claim period that a continuously foreign-going officer would. "Anniversary date" is irrelevant and related to a previous system of foreign earnings deductions.

[Clanky]

If you have a valid claim from January 2011 to January 2012, then as I understand it you should be able to claim a refund now for any tax that you paid during the claim period up to the 5th April 2011. You will have to wait until your file your tax return to be able to claim for the tax you paid between 5th April 2011 and the end of your claim period.

[Chiefy]

thanks Clanky thats exactly what I meant....hence the "anniversary" date (more meaning when you chose to start the claim rather than under the old system where it meant something different) and needing P45 / 60, you cant start making an initial claim without them but once you are in the system and (when qualified) keeping in the system it's easier as it just rolls along and you fill in the forms as soon as they are sent to you each year,

[YoungMariner]

Hi,

Just to clarify, the 'anniversary date' of your SED dates, has absolutely no correlation to the tax year and is simply the dates used for calculating the eligible 182 days. The tax year runs April to April, and claims are submitted online by January 31st, you can then claim each tax year individually (and previous years to a certain extent), and in the near future will receive a letter adivising your tax obligations and if you've been PAYE will receive your refund cheque.

[Steve]

Just to clarify, the 'anniversary date' of your SED dates, has absolutely no correlation to the tax year and is simply the dates used for calculating the eligible 182 days.

The "anniversary date" is a persistent myth. Please explain the relevance of "anniversary date" and "eligible 182 days" with reference to current tax regulations!

[YoungMariner]

Hi Steve, when people are referring to the Anniversary, I would assume for most of the cadets they are referring their initial claims, because for instance if you start at sea in January 2010, you wouldn't meet the requirements to claim in April 2010, but those days at sea would be usable for instance if the balance was achieved in 2010-2011 tax year. Even if you only met the requirements from January to January rather then April to April.

Then when I'm referring to eligble days, this is more of an issue then before, due to the more recent tightening on what is considered a ship, and that the day you arrive and the day you leave the country are now days in the UK.

Regardless of al the above, claims can only be made April to April.

[Steve]

But a claim period is not 'one year' or '365 days', it is a period of 365 days or more, most claims being of the "or more" variety. For example, in PM discussion with CD we've established that he doesn't really need to worry about where he is in January, his claim is good until at least June, even if he doesn't go to sea before then.

Because of 'or more', January to January and April to April really don't matter! Continued use of the "anniversary date" term is misleading to noobs, check out SKTax FAQ: http://www.sktax.co.uk/FAQRetrieve.aspx?ID=33762

Regardless of al the above, claims can only be made April to April.

SED claim periods are not April to April, only the tax year is. That controls when you can submit your self-assessment tax return, but has nothing to do with the period over which you can claim SED. If your valid claim period starts in March 2009 and ends in October 2012 then that is exactly the period over which your income tax is refunded.

It is very, very important when discussing tax to use language that is as precise as possible, to avoid confusion. It is possible that we all know exactly what we mean, and understand the system correctly, but are not expressing ourselves in a mutually intelligible manner. That is why I am being picky over this, to make it as clear as possible for newcomers to correctly understand the system.

[Clanky]

There is a difference between a qualifying period and a claim for repayment and I think people seem to be confusing the terms a little, a qualifying period runs from a point where you leave the UK to a point where you return, it must be at least 365 days long, so for the intitial qualifying period and a first claim for repayment the anniversary date is relevant.

A claim for repayment can only be made for a completed tax year (i.e. April to April) and can only be made in respect of tax paid during a qualifying period.

So in the case which was posted in the OP if a qualifying period overlaps tax years then no claim can be made for the previous tax year until a qualifying period exists (hence the importance of the anniversary date, although this is not an official term which HMRC recognise at all) and no claim can be made for the second half of the qualifying period until the end of the current tax year.