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Sam
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I am a UK resident but work abroad on oil rigs. How can I reduce

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I am a UK resident but work abroad on oil rigs. How can I reduce the tax I pay to HM Gov
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi Thanks for your question - I am Sam and I am one of the U tax experts here on Just Answer. You might be eligible for releif but can you advise the following work within UK waterswork for a UK companyare a foreign or UK national (you have advsied you are UK )Can you also advise what shift pattern you work (so say a month on and a month off) Thanks Sam
Customer: replied 1 year ago.
I am UK national working a 28 28 schedule in different parts of the world. It is a Company in Dubai, not sure which country it is registered with
Expert:  Sam replied 1 year ago.
Hi Thanks for your response AS you work out of UK shores and spend 28 days out of the UK and then 28 days in - then we cannot allow the normal non residency working route (which treats you as not resident and allows all income to be free of UK tax) We can also consider the statutory residency tests which examine how many ties you have in the UK - and as you spend more than 90 days in the UK, have a family and home (as you return back every other 28 days) then with 3 ties, the fact you spend more than 90 days in the Uk, means you fail these tests so cannot have any tax relief this way either. Finally we have Seafarers deduction (SED) or prev known as Foreign Earnings deduction (FED) relief to consider. This is quite a complex method to establish whether the remit is met. It looks at the 3 way pattern of days in, days out and days in - and more than half of the days out must have been met - and then the pattern of days out, days in and days out - and again more than half of the days out must have been met.With your situation The first review (and this is showing you how it works on a basic level - because at the start of any tax year - you could have been midway through a return home, or a work away - so the days in or out would be less than the 28 days initially) But 28 in28 out28 in Meant total days 84 days so more than 42 days out - and only 28 spent out - so this would have failed the remit on the 28 out 28 in28 out - then of the total of 84 days - 56 out - so this would be met.The trick is making the review when there are 2 sets of days in - actually exceed the initial 28 - which might mean time out of the UK, holidaying for example, so that 28 days exceeds the 42 day mark. At this time your accountants are right - but whether they have offered you the full explanation as to how you could qualify may not be the case. I have added a link here that fully explains the SED https://www.gov.uk/guidance/seafarers-earnings-deduction-tax-relief-if-you-work-on-a-ship (Ship also relates to a floating rig and flotilla etc) ask your accountants to fully review this for you. Let me know if I can assist further Thanks Sam but we may have a
Sam, Accountant
Category: Tax
Satisfied Customers: 13772
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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