Seafarers’ Earnings Deduction (SED) – Tax Relief for Seafarers

What is Seafarers’ Earnings Deduction (SED)?

The Seafarers’ Earnings Deduction (SED) allows qualifying seafarers to claim 100% tax relief on their earnings from working at sea. If eligible, you could claim up to 100% of UK income tax on your seafaring income—but you must file a tax return or claim form to receive the deduction.

This relief is available to both UK and EU residents who meet the qualifying conditions.

Who Qualifies for SED?

To claim Seafarers’ Earnings Deduction, you must meet all of the following conditions:

• Tax Residence – Be a UK or EU resident for tax purposes.
•  Work on a Ship – Your employment must be on a qualifying ship (offshore installations like oil rigs usually don’t qualify).
•  183-Day Rule – You must have worked outside the UK for at least 183 days in a 365-day period.
•  Foreign Port Rule – At least one journey in the tax year must begin or end at a foreign port.

 Unsure if you qualify? ABM Orkney can review your circumstances before filing.

How to Claim SED

• UK Residents – Must file a Self Assessment tax return to claim SED.
• EU Residents – Must complete and submit form R43M to claim SED relief.

What Documents Do You Need?

To process your Seafarers’ Earnings Deduction (SED) claim, you’ll need to provide the following:

1 Personal Information

• Full name
• Date of birth
• National Insurance Number
• UK or EU address

2 Employment & Income Details

• Employer’s name and address
• PAYE reference number (from payslip or P60, if applicable)
• P60 or P45 (if you’ve left employment)
• Payslips covering the tax year

3 Proof of Seafaring Work

To claim SED, you must provide evidence of your time working outside the UK:

• Seaman’s Discharge Book 
• Sea service records or employer’s letter confirming dates worked at sea
• Travel records (flight/ferry tickets, boarding passes, visa stamps, or other proof of travel)
• Crew lists/logbook records (if available)

4 Tax & Banking Details

• For UK residents – Unique Taxpayer Reference (UTR) Number (if registered for Self Assessment)
• For EU residents – Completed form R43M
• UK or EU bank account details (for receiving any tax refund)

Why Choose ABM Orkney for Your SED Claim?

I’ve Been There – With nearly 20 years at sea, I understand the process and the challenges.
Fixed Fee from £165 – No hidden costs, just straightforward pricing.
Fast Turnaround (6-8 Weeks dependant of HMRC) – So you can focus on your shore leave instead of paperwork.

Need help with your tax return?