Seafarers’ Earnings Deduction (SED)
Seafarers’ Earnings Deduction is one of the most valuable tax reliefs available to UK residents working onboard qualifying ships. If you meet the eligibility criteria, you may be able to claim 100% tax relief on your qualifying onboard earnings.
We help with:
+ Initial eligibility assessments
+ SED claim preparation and submission
+ HMRC tax return completion
+ Documentation reviews
+ Compliance support
+ Ongoing advice to protect future claims
Frequently Asked Questions
How do I make a claim for SED?
Register for self-assessment and complete and file a tax return.
Can I claim SED if I am not a seafarer?
Yes, your work does not have to be related to seafaring.
For example, a musician, entertainer or cook employed onboard
is eligible.
Does working on an offshore installation or flotel qualify?
No, these are not ships for the purpose of SED; however cargo vessels, tankers, cruise liners and passenger vessels do qualify.
Can I claim SED if I am not a UK resident?
No, you must be resident for tax purposes.
What documentation must I keep and for how long?
Air tickets + Travel vouchers + Hotel bills + Other receipts + Passports and visas + Seafarer’s discharge book + Freeboard logs of the ships you carried out duties on
It is advisable to keep all documents for at least 6 years after the end of each tax year. However, it has been known for HMRC to go back further than 6 years.
Does HMRC need documentation when tax return is filed?
No, but this will be required for HMRC enquiries into your tax return, which could be at any time. Anyone not in a position to provide the documentation could have previous claims disallowed.
What are the time limits for SED claims?
HMRC allow you to go back 4 tax years (including the year you are in) so from the 2019 – 2020 tax year the earliest we could go back is to the 2016 – 2017 tax year.
Can I claim SED if I am self-employed?
No. SED only applies to individuals with a contract of employment.
Do I have to make national insurance contributions?
No, but you can make voluntary Class 2 contributions to preserve your state pension benefits.
Could I be liable to pay Class 1 NIC?
Yes, if you serve on board vessels that are registered in the UK or Isle of Man.
Deep Sea Oil Rig & Offshore Worker Support
Tax rules for offshore and marine industries are highly specialised, and generic accountants often miss key opportunities or risks.
We work with:
Deep sea oil rig workers
Offshore engineers
Marine contractors
Surveyors and technical specialists
Land-based offshore professionals
International project workers
Our advice is tailored to your working patterns, travel schedules and contract structures.
Frequently Asked Questions
Can I claim tax exemption on UK earnings?
No, Non – Residency applies to foreign earnings.
When can a claim commence?
A claim can start (or end) on any date.
What is the minimum qualification period?
Any new claim must run for a minimum of 13 months.
How do I claim the relief?
By filling in the relevant pages of a Self – Assessment Tax Return.
How many days can I spend in the UK?
In any whole tax year, you must not exceed 90 days in the UK.
Can I claim Non Residency if I am self – employed?
No, Non Residency only applies to employees.
Can I make pension contribution to a UK personal pension?
Yes, you can pay a total gross contribution of £3,600, but only for a maximum of 5 years from the date Non Residency commences.
Can I make contributions to an ISA?
No, if you become Non – Resident you must stop all contributions to ISA’s.
Will I be able to get a mortgage?
It may not be possible to find mainstream lenders willing to lend whilst you are regarded as Non Resident.
Service Companies & Limited Company Solutions
We assist with:
Limited company formation
Service company setup
Contractor tax planning
Dividend and salary strategies
IR35 guidance
Company accounts and compliance
Corporation tax and HMRC submissions
This can be an effective structure for professionals working internationally or on contract-based assignments.
Frequently Asked Questions
How does a service company work?
We incorporate a UK limited company for you and you can provide your services to offshore companies.
What is the advantage of this?
The income generated is paid into the company and you can then pay yourself in the most tax efficient way with a wage and dividends.
Do I need a contract with the companies I provide my services to?
Yes, you will need a contract that establishes you are not employed by that company. This falls under the IR35 rules.
Will I need a company bank account?
Yes, you need to set up a UK bank account for your payments to be made from offshore.
Will I need an accountant to administer the company?
Yes, you have to file tax accounts at HMRC each year and must use an accountant who has compliant software.
Can my spouse / partner be a shareholder in the company?
Yes, shares can be allocated to them; wages and dividends can be paid to them. This is very beneficial if your spouse or partner does not work.
Tax Returns & HMRC Compliance
Accurate tax returns are essential when dealing with specialist overseas earnings and exemption claims.
We handle:
Self Assessment tax returns
HMRC filing requirements
Historical claim reviews
Late submissions and corrections
HMRC investigations and enquiries
Ongoing tax planning support
Our goal is to keep your affairs simple, compliant and stress-free.
Ongoing Year-Round Advice
Tax planning does not stop once your return is filed.
Many clients work on changing schedules such as rotational contracts or week-on/week-off patterns, which can directly affect eligibility for exemptions.
We provide ongoing advice throughout the year to help you:
Track qualifying days
Protect tax exemption status
Avoid accidental disqualification
Plan travel and working arrangements
Make informed financial decisions
This proactive support helps protect valuable claims before problems arise.
Trusted Advice Wherever You Are
Whether you are working in the North Sea, the Middle East, onboard cruise ships or across international marine projects, Haven Tax provides reliable support wherever your career takes you.
We make specialist tax advice simple, practical and easy to access—wherever you are in the world.
Speak to Our Team
Get expert advice tailored to your situation and discover how we can help protect your income and simplify your tax affairs.