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  • fungimala
    started a topic Tax Query

    Tax Query

    Hi guys, just a few questions about SED that I can't see answered anywhere-

    Is the SED separate from our Tax free allowance of £11,850? IE if I work coastal via an agency in my leave and earn £4k in UK waters, whilst actually taxable, would I not pay tax because I haven't earned my £11,850, or would I because I've already earned ~£30k which was on an overseas vessel even though I've claimed SED for it?

    On the 2nd year of SED do you still work back from the original date from the very first time you left the UK? If it was the 1st Jan 2017 then would the next SED work from 1st Jan 2018 or could I maximise it by starting it later if I joined ship later on in my leave e.g 1st Feb (assuming of course I had my tax days in the first year)

    Thanks guys

  • agibbs98
    replied
    I would always recommend an accountant for the first few times you claim, especially when you have questions like the above. For the sake of £250, they’ll ensure you have everything right and you won’t have to lift a finger to get your money back/ensure your tax free status.

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  • EH75
    replied
    Originally posted by fungimala View Post
    Is the SED separate from our Tax free allowance of £11,850? IE if I work coastal via an agency in my leave and earn £4k in UK waters, whilst actually taxable, would I not pay tax because I haven't earned my £11,850
    I believe this is correct. Essentially the way to look at it is that the SED is a "deduction" so in your scenario you would've earned a total of £34k - £30k SED eligable and £4k which is taxable, but as the £30k is "deductible" you are left with only £4k of taxable income which is obviously under the threshold. When you do your tax return it should work it all out for you anyway.

    Originally posted by fungimala View Post
    On the 2nd year of SED do you still work back from the original date from the very first time you left the UK? If it was the 1st Jan 2017 then would the next SED work from 1st Jan 2018 or could I maximise it by starting it later if I joined ship later on in my leave e.g 1st Feb (assuming of course I had my tax days in the first year)
    I asked this question on here a while back (there is a longer thread on SED somewhere) and basically it works from the very first date you left the country and keeps rolling infinitely as long as you meet the criteria. So for example my SED period has been running since 2013. There are various spreadsheets that people have made up and even apps for phones now which will allow you to keep on top of this.

    The above is my understanding, obviously if you want a definitive answer speak to someone who is actually qualified in such matters.

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