Are you working or have worked offshore within the last 4 years ?
You could be missing out on tax refunds you are entitled to.
You can claim for travel to and from the sites / rigs, lodgings, meals, laundry and tools, even if you receive a contribution from your employer.
Typical refunds average £2,000 per year and our highest offshore industry refund was for £21,000!!!
Offshore workers can claim a tax refund for travel expenses to what the HMRC have designated “temporary workplaces” – which is defined as less than 24 months.
For offshore oil rig workers, these travel expenses can be incurred during the journey to fly out to the rig – for example, driving or taking public transport to the airport or heliport.
Tax rules also mean that offshore workers can claim a refund for hotel bills and other related expenses such as:
The average tax back we have claimed for offshore oil rig workers is currently between £600 – £700 per year.
As the law allows us to make a claim for the past four years, your first tax refund claim could be for as much as £2,800 – imagine what you could do with that amount of money, which could legally be yours anyway.
Working offshore for long periods of time is challenging as it is, without the tax man taking more off you than he is entitled to. To find out if you have a tax refund claim to make, get in touch with us now…
When you pay tax in two different countries on the same income, it is called ‘double taxation’ and is a very common issue for offshore workers.
If you are a UK resident but work offshore in a different country, it is possible to end up paying more than one set of taxes to countries that have different tax laws and regulations. The same applies for non-UK residents working here in the UK
In order to try and prevent the issue of double taxation affecting offshore workers, the UK has drawn up ‘double taxation agreements’ with other countries to help determine which tax territory has the priority to claim tax on the workers income.
In some cases there is special tax relief available from one of the countries involved to cover the difference in the extra tax you are being charged. The rules around this tax relief are different depending on what ‘double tax agreement’ is in place, so if you think this applies to you contact us today to find out if you can make a claim.
Seafarers Earnings Deduction (SED) is a device to allow workers who carry out all or most of their duties on a ship to claim tax relief.
It can be a tricky area of tax legislation to navigate as there is some vague wording, but for some it can ultimately result in paying no income tax whatsoever – so is well worth looking into in more detail.
SED is designed mainly for people who work on ships on a permanent basis, but not everyone applies. Working on an offshore installation like an oil rig wouldn’t normally entitle you to SED, but the issue is not always clear cut due to the wording of the rule.