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bigduckontax
bigduckontax, Accountant
Category: Tax
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I'm working abroad oil rigs 28 day on and 28 day off I want

Customer Question

I'm working abroad oil rigs 28 day on and 28 day off I want to keep pay tax in UK
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
If you spend more than 183 days in the UK in any one tax year [6 April - 5 April] you are liable to UK taxation on your world wide income. From your question you may be borderline on this as 365/2 = 182, but your situation of 28 on and 28 off is relatively common in your industry. I have a friend who was on exactly that arrangement and he was subject to UK taxation.
However HMRC will not give advice or detail on the matter of oil rig workers and say that each case will be considered on its merits by the relevant tax office. For a definite answer I have to tell you that you must consult your own office, but I think you will find yourself subject to normal UK Income Taxation and National Insurance contributions.
Here is the relevant summary from HMRC for your type of employment:
'Gas and oil rig workers
If you work on an oil or gas rig, you may be entitled to tax relief on your earnings, but the tax rules are complicated. They vary according to whether:
The place you work is within UK waters
The company you work for is a UK company
You are a foreign or UK national
The country in which you work has a double taxation agreement with the UK
Whether you are a UK resident working as a gas or oil rig worker, or a foreign national working within the UK or for a UK company abroad, you can find out more about how you will be taxed as a gas or oil rig worker by contacting HMRC.
Contact HMRC: [edited] http://search.hmrc.gov.uk/kb5/hmrc/contactus/home.page
National Insurance for gas and oil workers
There are also special rules regarding National Insurance for gas and oil rig workers.
To find out more speak to NIC&EO - International Caseworker on telephone: 0300(###) ###-####(+44(###) ###-####from outside the UK).'
I do hope I have shed some light on your position for you, but to an extent my hands are tied by HMRC's directives.