EIM33003 - Seafarers바카라 사이트™ Earnings Deduction: example of eligible period straddling tax years

Section 379 ITEPA 2003

An employee worked for a shipping company in its Southampton offices until January 2004 when she was assigned to work on one of the company바카라 사이트™s cruise liners operating in the Caribbean. She left the United Kingdom on 1 January 2009 and returned to shore based employment in Southampton on 1 January 2010.

During the year the employee:

  • remained ordinarily resident in the United Kingdom
  • performed the duties of an employment as a seafarer outside the United Kingdom
  • achieved an eligible period of at least 365 days.

In consequence all of the earnings attributable to the eligible period are covered by the deduction.

For example:

  • salary for the period: £24,000
  • travelling expenses: £2,000
  • total earnings for the period: £24,000 + £2,000 = £26,000
  • less deduction under Sections 337 to 338 ITEPA 2003 for travelling expenses: £2,000
  • amount to be covered by the Seafarers바카라 사이트™ Earnings Deduction: £24,000

The eligible period straddles tax years 2008 to 2009 - 2009 to 2010. In general terms;

  • 3 months of the eligible period falls into 2008 to 2009 and
  • 9 months falls into 2009 to 2010.

The amount of the deduction for 2008 to 2009 is £24,000 x (3 ÷ 12) = £6,000.

For 2009 to 2010 it is £24,000 x (9 ÷ 12) = £18,000.

See EIM33051 for further guidance on attribution of earnings.