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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3829
Experience:  FCCA FCMA CGMA ACIS
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I am currently working as an offshore project manager. I live

Customer Question

I am currently working as an offshore project manager. I live in the UK however I get paid in usd from the caymans into my local uk account. I am unsure if I need to declare these earnings and if so how and when?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

How long are you in the UK per annum?
Customer: replied 3 years ago.

Hi keith. the company I work for has offices outside of the uk in Houston. I work of an offshire project manager working all over the world on a 180 day contract. im aware of a seafarers allowance for 180 days but im not sure if this can be split for half a year over two tax years? In addition im not currently paying any tax or completing self assessmebt tax forms?

Expert:  bigduckontax replied 3 years ago.
Yes, got it, but the key to your UK taxation position depends upon how long you are in the UK each tax year. Please tell me so I can answer your question.
Customer: replied 3 years ago.

less than 180 days.

Expert:  bigduckontax replied 3 years ago.
In general terms to avoid UK taxation you must be outside the UK for a complete tax year and only return for a maximum of 91 days in each tax year. If you breach the 91 day rue you will be liable to UK taxation on your income world wide. However under the double taxation agreements between the UK has between innumerable countries the general rule is that any tax deducted locally is allowed as a tax credit against and UK tax assessment. It is normal to make a self assessment to HMRC annually after the end on each tax year. If you work on oil rigs, please let me know.
Customer: replied 3 years ago.

I dobt work on oil rigs or fixed platforms. I work on site investigation vessels in the oil and gas sector. so when does the self assessment Need to be completed?

Expert:  bigduckontax replied 3 years ago.
Self assessment returns must be made on paper by 30 September in the year the tax year closes on 5 April and 31 January in the next year if on line. You would appear to have missed several deadlines and may be charged penalties and interest on unpaid tax. You may be entitled to seafarers allowance which reduces your UK taxation to zero. I suggest your best course of action is to come cap in hand as it were to HMRC to sort out your tax affairs and also enquire as to your position viz a viz seafarer's allowance. If no loss of revenue has occurred HMRC might just be lenient. Any tax paid to other countries is only a tax credit and cannot be reclaimed through HMRC sources. Please remember the 91 day rule, if you breach it you are liable to UK taxation, but seafarer's allowance may still save you!
Customer: replied 3 years ago.

Hi Keith,


 


I only started working for this new company in February of last year so based on what you're saying im late for them by two months in 2013 and can proceed with self assessment for this year and 2014.

Expert:  bigduckontax replied 3 years ago.
You would appear to have not filed a return for the 12/13 tax year so things may not be quite as bad as I imagined. You can't make a return for 13/14 until after 5 April anyway. The ball is in your court to sort out your taxation affairs. It is your responsibility to make a self assessment return, you cannot hide behind HMRC's failure to ask you to make one.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.
Expert:  bigduckontax replied 3 years ago.
A colleague has drawn my attention to a minor error. Paper self assessments deadline is actually a month later, 31 October, not 30 September as originally advised. Deep apologies for the slip of the pen!

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