Working in the Superyacht industry has a great deal of benefits and for most this is a potentially tax-free salary
Something that is important to remember is this: Tax is hardly ever deducted from your salary when you are paid, but it is your responsibility to pay any tax you may owe. Just because your salary has not had tax deducted does not mean that you do not owe tax. It is your responsibility to declare your income and pay tax if you owe any.
There are lots of factors that affect whether or not you owe tax but it generally comes down to a couple of key points:
Residency: The country you are tax resident of is the country you are expected to declare your income and pay tax in (if you owe any). Tax residency will be based on the time you spend in any country.
The tax regulations of that country. As a seafarer (that’s you) certain countries make allowances for the fact that you work offshore and spend a relatively small amount of time at home.
Because the way you keep your tax free earnings “tax free” has changed it is important you know where you stand with regard to residency, tax status and, more importantly than ever disclosure of earnings.
We have years of personal experience in the Superyacht industry, and our team of accountants are perfectly placed to answer your questions, offer advice specific to your personal situation, and ultimately ensure your tax, residential status, liabilities and tax returns are taken care of in a smooth and seamless way.
On this page you will find some specialist tools to help you get the ball rolling and understand your position. Our team of specialist will receive all the information you input which will then allow us to give you informed advice on the next steps.
It is now a legal requirement for most offshore banks to disclose their client information to the relevant tax authorities and so, if you do bank offshore you can be pretty certain that the tax man at home knows how much you earn. Have a look here to find out more.
Resident or Non-Resident
Your residential status has a direct impact on your personal tax situation. Therefore the country you are considered resident of is the country you are expected to declare your income and pay tax if you owe any.
You can also, only be resident of one country which, depending on the country itself has a number of detailed tests to calculate your status.
Remember, hiding from this is not the answer. It is very difficult to hide from your home tax authority and so be proactive and let’s work out your position for you so there are no nasty surprises hiding around the corner.
Understand your situation
Knowing your Tax position is REALLY important to Superyacht Crew. There are thousands of you that do not already do your taxes and the majority of you are in this position because you do not understand your responsibilities.
If you are British, work on a yacht and have done since before April last year then you MUST file a tax return. Because of what you do for a living and the amount of time you spend outside the UK, the chances are that you will not have any tax to pay. Hiding from this does not help as HMRC, when they catch up with you will assume you are hiding something.
So, if you don’t file a tax return at the moment or don’t know what to do, get in touch.
Do you qualify for SED?
If you are a UK tax resident and are employed aboard a Yacht or Ship operating outside UK waters you may qualify for a reduction in your income which is subject to UK tax. This is known as the Seafarer’s Earnings Deduction (SED).
Those of you who do not file a tax return because you think you don’t have to pay tax, remember this.
You can only get the deduction by filing a tax return. This is because, if you don’t tell anyone how does HMRC know this?
Get in touch, there is no downside to filing a return. We can help you through the process.
Ready to file?
Now you have read all the information above don’t you think it is time to do something?
Yacht crew all over the world are slowly coming around to the fact that declaring their income and filing a tax return is a fact of life these days. The longer you wait the more likely you are to find yourself in an uncomfortable situation.
If you are ready, click below to file your return. If you would like to talk about it first get in touch and we can have a chat on the phone and explain everything in detail.
By clicking the button above you will be taken to our UK tax pages. If you are not already a member we will ask you to join our preferred plus membership once we receive your forms. If you are already a member, your annual tax return may be included in your subscription and you will be aware of this already. Do not click this link if you are not British as it is not relevant to you.