Tax free postings

Discussion in 'Finance & Pensions' started by POTS, Jan 25, 2012.

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  1. Read in the papers recently that the reason for granting short UK leave during deployments to Afghanistan is to ensure that the troops do NOT qualify for non-dom status and avoid paying income tax.
    The article went on that any continuous overseas service above 6 months would qualify as Non Domiciled and therefore not liable for UK income tax.
    Does anyone know when this was introduced?
    My RN service included 18 month, 2yr and 1yr overseas tours without coming back to UK, but we were told that the shore base/ship counted as UK territory for tax purposes.
  2. Told the same thing even when stationed abroad for 2.5 yrs when the local rate of income tax was considerably lower than the UK ... paid UK tax rates right through.
  3. Because they are not Warships, neither are the RFA members of the Armed Forces.
  4. AFAIK when based overseas you are classed as UK resident for tax purposes. That was the case up until Jan 2008
  5. Members of the RFA hold a Seaman's Discharge Book and must hold civilian qualifications for the position they hold onboard (Approved and certified by the MCA) and are classed as Merchant Seaman though are also trained in military tasks - such as weapons operators - 20mm/Minigun/GPMG etc, trained to RN standards in Fire Fighting & DC, operating RN Comms systems and conducting helo ops. As pointed out - RFA vessels are classed as "Goverment ships" not Warships (Part of the "Naval Service", though not part of the Armed Forces) thus fulfill the seafairer's current right to claim back tax if out of the county for than 183 days in 365.
  6. silverfox

    silverfox War Hero Moderator Book Reviewer

    The only thing I have come across is if you are doing over 12 months unaccompanied then you can apply for a 50% rebate in Council Tax.

    I add a health warning that I'm not sure about the un accompanied bit, but I'm sure someone closer to 752 than I am at the moment can provide a more precise answer.
  7. janner

    janner War Hero Book Reviewer

    Maybe Chaz can update us on his current status tax wise?
  8. I can indeed confirm that serving abroad does not change your tax payments. I'm still paying normal rates of Income Tax & National Insurance. I also pay Charge In Lieu Of Council Tax (CILOCT) while in privately rented accom out here. Additionally as I'm a UK taxpayer I'm also liable for CSA payments for my 2 kids back in the UK. LOA however, is tax free, what's left of it!
  9. janner

    janner War Hero Book Reviewer

    Chaz, I thought you were maybe living on a foriegn base so therefore might be exempt.
  10. Nope, in privately rented housing, we were lucky enough to have chosen our own property, obviously within our rental ceiling and how many bedrooms we were entitled to IAW the JSP! Fortunately living within Fort Meade wasn't an option, a blessing in disguise as there are 44000 personnel based there. I don't work inside the base either which is a bonus!
  11. janner

    janner War Hero Book Reviewer

    So would you not be UK tax exempt (if away for the required period)?
  12. No, am still working for the RN, just not in an RN environment!
  13. Hi all,
    The posting witch have no required for tax is very best and also good because in this case you can save your money and also save from any type of tax you are not able to pay any tax to any body on your posting.
    • Like Like x 1
  14. The RFA are possibly using tax rules for merchant seamen. They are only allowed to be in the UK for a maximum of 84 days a year, except for medical reasons or training.
    When I was a field engineer in the tobacco industry many of us took advantage of these tax rules. I managed to get three years Tax Free but then spent too much time in the UK. tax was paid as normal and then reclaimed if/when the conditions were met
  15. Somebody at JPAC needs to audit you, there are far to many dip-ins in that post.
    • Like Like x 1
  16. Yes, isn't it?
    • Like Like x 1
  17. The RFA do use tax rules aimed at merchant seamen because that is what they are. Your 84 days bit is incorrect, though the earlier posted 183 days out of UK waters is a rough approximation of the rule, you also have to visit a non-UK port. The actual rule is known as Seaman's Earnings Deduction. You must also be on a ship not just away, hence the Discharge Book which is signed and stamped by the Captain as evidence as to when you joined and left the vessel. Holidays out of the UK also count but you may be asked to prove that it was a holiday and that you were not just off earning money abroad.

    As for the bit about being classed as non-dom it is a lot more than 183 days out, not sure of the actual figure but around the 300 mark I think. If it was only 183 lots of people would get in on it by working away.
  18. The work for which SED is claimed must be on a ship, or incidental to working on a ship. There is no prohibition on counting time spent working (ashore) overseas towards the qualifying period for SED, however you would have to pay appropriate income taxes on earnings from that work as it is not eligibile for SED. e.g. An RFA seafarer could work as a bus driver in Spain whilst on leave, claiming SED on his earnings from the RFA, and claiming time spent on leave in Spain towards the qualifying period, but paying tax (probably Spanish tax) on his earnings as a bus driver.

    By the published rules RFA seafarers should not be eligible for SED, regardless of the reality that they do receive it.
  19. tiddlyoggy

    tiddlyoggy War Hero Book Reviewer

    This site needs more people like you.

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