Here’s something that might sting a bit: if you’re working on yachts or offshore vessels and paying UK income tax, there’s a good chance you don’t actually need to be.
Yep, you read that right. Zero. Zilch. Nothing.
It’s called the seafarer tax deduction (officially the Seafarers’ Earnings Deduction), and it’s been around for years—yet thousands of yacht crew and offshore workers have never heard of it. At Nautic Accountancy, we’ve helped hundreds of seafarers claim back what’s rightfully theirs. Some have walked away with five-figure refunds. Let’s break down how it works.
So What’s the Deal?
The seafarer tax deduction lets you knock 100% of your ship-based earnings off your taxable income. Not a percentage. Not a reduction. The whole lot.
If you qualify, your UK income tax bill on those earnings drops to zero. Whether you’re pulling in £40k or £150k working at sea, you could legally owe HMRC absolutely nothing on it.
Sound too good to be true? It’s not. It’s just that nobody talks about it—and HMRC certainly isn’t going to remind you.
Do You Qualify? Here’s the Quick Version
You need to tick a few boxes to claim the seafarer tax deduction. Nothing crazy, but you do need to pay attention.
You’re UK tax resident. This relief is for Brits who work abroad on ships, not people who’ve emigrated.
You work on a ship. Yachts, offshore vessels, cargo ships, cruise ships—all good. Fixed oil rigs? Unfortunately not.
You work outside UK waters. That means beyond the 12-nautical-mile limit. Med season? Caribbean charter? You’re golden.
You meet the 365-day rule. This is the big one. You need a qualifying period of at least 365 days where you spend less than half the time in the UK, and no single UK visit longer than 183 days.
Not sure if you qualify? Drop us a message and we’ll figure it out for you in minutes.
The 365-Day Thing (It’s Easier Than It Sounds)
This trips people up, but it’s actually pretty straightforward once you get it.
You need 365+ consecutive days where you’re not in the UK for more than half that time. So if your period is exactly 365 days, you can be in the UK for up to 182 days. Extend it to 400 days, and you get 200 UK days to play with.
The trick? Your qualifying period doesn’t have to match the tax year. You can pick the dates that work best for you. That’s where having someone who knows the system inside out makes a massive difference.
One thing to watch: if you’re in the UK at midnight, that counts as a UK day. Late flight home? Counts. Early morning departure? Still counts if you were there at midnight. Keep a log—seriously, it’ll save you headaches later.
Who’s This Perfect For?
Superyacht crew – Captains, engineers, stews, deckhands… if you’re cruising the Med or Caribbean and barely touching UK shores, the seafarer tax deduction was basically made for you.
Offshore workers – Working on supply vessels, dive support ships, or anything that moves? You’re likely eligible. Just not fixed rigs, unfortunately.
Merchant navy – Container ships, tankers, cargo vessels doing international routes? This is your relief.
Cruise ship crew – If your ship’s doing international itineraries (not just UK coastal trips), you could qualify too.
Already Paid Tax This Year? You Can Get It Back
If your employer’s been deducting PAYE from your wages, that doesn’t mean you’ve lost out. You claim the seafarer tax deduction through a Self Assessment tax return, and HMRC refunds what you’ve overpaid.
Even better: you can claim for the last four tax years. So if you’ve been qualifying for years without knowing it, there could be a serious chunk of money sitting there waiting for you.
We’ve had clients come to us thinking they might get a few hundred quid back, only to discover they’re owed £15,000+. Get in touch and let’s see what you’re owed.
Why Seafarers Choose Nautic Accountancy
Look, you could try to figure this out yourself. But when you’re mid-Atlantic with patchy WiFi and a tax deadline looming, that’s not exactly ideal. At Nautic Accountancy, we only work with seafarers—it’s literally all we do.
We’ll check if you qualify, find your best qualifying period, sort your Self Assessment, and chase any refunds you’re owed. You focus on the job. We handle the tax stuff.
No jargon. No surprises. Just more money in your pocket where it belongs.
Ready to Stop Overpaying Tax?
The seafarer tax deduction is there for the taking—you just need to claim it. Whether you want to check your eligibility, claim for this year, or dig into past refunds, we’ve got you covered. Get your free consultation now and let’s get you what you’re owed.
Quick disclaimer: This article is general info, not personal tax advice. Everyone’s situation is different, so chat with a professional (like us!) before making any decisions.
