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bigduckontax, Accountant
Category: Tax
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I am an EU national working on cruise ship. I get paid in

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I am an EU national working on cruise ship. I get paid in USD. I usually have 4 months onboard contract and 2 months vacation. I am only paid for the time that I am onboard the ship. I reside in UK (Scotland) for the 2+2 months in a year that I am on vacation. My salary is sent to an UK account for the 4+4 months in a year that I am onboard the ship. I believe I need to declare the money that I bring into UK. I need help to go about this process.

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

You need to declare all the income you receive, not just that which you bring to the UK, to HMRC at the conclusion of every tax year [5 April]. You will then be sent a bill for the Income Tax (IT) and National Insurance (NI) owing. I assume that your employers are not deducting this. You are not entitled to Seafarers' Allowance as you do not spend sufficient time afloat.

I am so sorry to have to convey such dismal news.

Customer: replied 10 months ago.
I am at sea for 8 months in a year, is this period not enough to be entitled for seafarers allowance.?

Unfortunately no, you have to be afloat for 365 days. Actually it is the Seafarers' Earnings Deduction and the entitlement is [source: UK Gov 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)'
Customer: replied 10 months ago.
What is the rate of tax applied by HMRC in this case?

After deducting your Personal Allowance, currently 11.5K, the firt 34.5K is taxed at 20% and anything above at 40%. I assume that your income will not rise above 100K.

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Thank you for your support.