Revenue and Customs Brief 33/07
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Issued 2 April 2007
Seafarers’ Earnings Deduction – New information requirement for tax returns
for the year ended 5 April 2007 onwards
For tax returns for the year ended 5 April 2007 onwards, employees who enter
an amount for Seafarers' Earnings Deduction ('SED') in box 1.37 of the
Employment Pages are required to enter the names of the ships on which they
performed employment duties as additional information in box 1.40. There are
references to this new requirement beside box 1.37, on page 8 of the Notes on
Employment and on page 2 of Help Sheet IR205.
This means that we will no longer need to open a formal enquiry simply to
establish the name of an employee's ship in order to check whether earnings for
duties performed on that vessel qualify for SED. This will allow us to focus
enquiries on those cases where the status of a particular vessel may be in doubt
and / or to check that the employee has satisfied the other conditions for SED
and correctly calculated the amount of the deduction.
Fewer routine enquiries from HMRC for employees who observe the new
requirement should help to reduce the costs of tax compliance for this category
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Article Published/Sorted/Amended on Scopulus 2007-04-02 23:34:32 in Tax Articles