What counts as employment 'as a seafarer' under section 384 of the Income Tax (Earnings and Pensions) Act 2003?

Under section 384, employment 'as a seafarer' means an employment consisting of the performance of duties on a ship, or duties performed on a ship together with other duties that are incidental to those shipboard duties. For example, a merchant navy officer working on a vessel and undertaking related administrative work ashore would qualify.

Why is Crown employment excluded from the seafarers' earnings deduction?

Section 384 excludes Crown employment of a public nature where earnings are paid from the public revenue of the United Kingdom or Northern Ireland. This ensures that government employees carrying out public duties at sea cannot benefit from the seafarers' earnings deduction, as the relief is not intended for public servants performing government functions.

Can Royal Fleet Auxiliary Service personnel claim the seafarers' earnings deduction?

Yes. The Finance Act 2018 introduced an exception so that Royal Fleet Auxiliary Service personnel are not treated as being in excluded Crown employment. This means Royal Fleet Auxiliary crew members can potentially qualify for the seafarers' earnings deduction, provided all other statutory conditions of the deduction are satisfied.

Do incidental duties performed ashore prevent someone from qualifying as a seafarer under section 384?

No. Section 384 specifically provides that employment qualifies as seafarer employment where the person performs duties on a ship together with other duties incidental to those shipboard duties. Therefore, incidental shore-based tasks such as port safety inspections carried out alongside the main shipboard role do not disqualify an individual.

Income Tax (Earnings and Pensions) Act 2003 section 384

Meaning of employment "as a seafarer"

Section 384 defines what counts as employment "as a seafarer" for the purposes of the seafarers' earnings deduction, and specifically excludes most Crown employment from qualifying.

Employment "as a seafarer" means a job that involves carrying out duties on a ship, or duties on a ship together with other tasks incidental to those duties
Crown employment of a public nature is excluded, meaning those employees cannot claim the seafarers' earnings deduction
An exception to the Crown employment exclusion exists for personnel serving in the Royal Fleet Auxiliary Service, who can qualify as seafarers
Crown employment is excluded only where the earnings are paid from the public revenue of the United Kingdom or Northern Ireland

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