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bigduckontax, Accountant
Category: Tax
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I normally claim seafarers allowance. I have been sick for 7

Customer Question

I normally claim seafarers allowance. I have been sick for 7 months and paid by an insurance policy. Do I have to pay tax on these payments? The insurance policy is paid half by me and half by my employer.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Insurance policy pay outs are generally outside the scope of UK taxation. Your employer's payments will be subject to tax in the usual way. You may, of course, loose your Seafarers' Allowance as the basic rule is [source: Gov UK web site]:

'To get the deduction you must have:

  • worked on a ship
  • worked outside of the UK long enough to qualify for the deduction - usually a minimum of 365 days
  • been resident in the UK or resident for tax purposes in a European Economic Area (EEA) State (other than the UK)'

I am so sorry to have to serve you up a Curate's Egg.