1094 - Foreign earnings not taxable in the UK

Seafarers' Earnings Deduction

Seafarers are entitled to a 100% deduction from their seafaring earnings if they meet certain conditions:

• they must work on a ship - offshore installations are not treated as ships - see EIM33103 and EIM33106
• the names of the ships on which the employee has worked will be needed for the SA return
• the claim must cover at least 365 days and they must be absent from the UK for a minimum of half of those days
• the absence can be continuous or made up of a number of periods - details are included at EIM33004 and EIM33005 as well as in the Help Sheet 205 - Seafarers' Earnings Deduction, which will take you through the 'eligible' period calculation and work out the deduction to be entered in this field
• their duties must be performed wholly or partly abroad Claims can be made by UK residents via SA or EEA residents via R43M(SED) process.

Foreign earnings not taxable in the UK

You will need Helpsheet 211, 'Employment – residence and domicile issues' to work out the amount to put in if you:

• are, will be or have been, non-resident or claiming split-year treatment
• have been non-domiciled
• are, or will be, non-domiciled and the remittance basis rules apply to some or all of your earnings
• received income in a foreign country that you could not bring to the UK because of exchange controls or a shortage of foreign currency in that country

You may also need to fill in the ‘Residence, remittance basis, etc' pages.