Seafarers Earnings Deductions

Seafarers Earnings Deductions

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We have a client who on a certain day during eligible period calculated for SED shows as a fail. This is due to the days in UK being exactly same as 50% of period. My question is for clarity. Is it any day DURING the eligible period or the total at end of a 365 day period. I have always assumed at end of qualifying period of 365 days. I suppose also a query is what if the days are the same at end of a period. Guidance states the days spent in the UK should be less than 50%, what about if it equals. I would say fail.

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By thomas34
04th Aug 2014 13:32

SED

The 50/50 situation seems to fail as would spending 183 consecutive days in the U.K. From EIM33006 it suggests that the calculation must be done within the eligible period of 365 days, so a failure at that point (the point where a taxpayer returns to the U.K.) would restart the clock (the 365 day eligible period). My interpretation is that the absences from the U.K. must therefore be "front-loaded" to satisfy the conditions.

 

 

 

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By Steve Kesby
04th Aug 2014 13:43

Exactly 50% is a fail, but!

The legislation requires that at least half of the days in an eligible period are days of absence from the UK.

However, it's not just a period of 365 days. It's a period of at least 365 days.

An eligible period can span many years. It must begin and ends with a period of absence from the UK. In between it can include multiple periods of presence in the UK, provided that no single period of presence in the UK exceeds 183 days or causes a breach of the 50% test.

EDIT: A period of presence in the UK of exactly 183 days wouldn't cause the eligible period to end though, the legislation says not more than 183 days.

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