Yes, offshore workers living outside Britain and classed as a UK non resident can claim a tax rebate. As you would expect, there are particular criteria that must be met and some evidence is required to support your claim.
When am I eligible?
Your eligibility for an offshore worker’s UK tax rebate is influenced by several factors. The main factor for offshore workers is your placement on rigs or platforms that HMRC would classify as a temporary workplace.
Their definition is very specific – a temporary workplace means a work location that you are contracted to work at for up to 24 months. Having a temporary workplace means that you can access tax relief for your travel, accommodation and subsistence expenditure that wouldn’t otherwise be allowable. For example, travel from your home to the heliport or airport would be included.
What happens if my contract is changed to more than 24 months after I’ve started?
As long as you initially expect to be working at a rig or platform for less than 24 months, you are allowed to claim travel to a temporary workplace. If this is then extended by your employer after your start date, you remain eligible for those first 24 months.
So it doesn’t matter that I am a UK non resident?
The tax relief regulations apply to everyone who has worked and paid tax in Britain. It doesn’t matter if you do not live in the UK, you entitlement is the same. There are increased variables to your situation if you don’t live in Great Britain, which can make your claim a little more complicated. Other issues that come into play are things like where you are resident for tax purposes and if your home country has a Double Taxation agreement in place with the UK.
I get a travel allowance from my employer, so does that mean I can’t claim that tax relief from HMRC?
This, again, depends on your particular set of circumstances. If your employer’s travel allowance is non taxable and covers the full cost of your travel, then you will not be able to claim tax relief from HMRC.
Using your car
If your employer pays you some or all of the AMAP amount and this is taxed alongside your salary, then you will be able to claim the full amount AMAP rates of .45p and .25p per business mile. If you are paid a mileage allowance which is non-taxable then only the difference can be reclaimed. For example, the full tax free amount is 45p per mile for the first 10,000 miles and 25p after that distance. So, if your employer only pays you 25p per mile for the first 10,000 miles, then you can usually claim the extra 20p per mile.
Using public transport
The AMAP rules only apply to you if you are driving your own car. If you use public transport and receive a taxable travel allowance from your employer, then you can usually reclaim tax relief on the cost incurred which includes flights and train journeys.
Can I only claim for travel and accommodation?
There are a whole host of allowable tax reliefs for work expenses laid out by HMRC. We have highlighted travel and accommodation because we have found them to be the most common successful claims made by our previous clients that are offshore workers.
But it is important to ensure that you aren’t missing out and consider all the rules as they apply to your individual situation. For example, the cost of belonging to a professional body can be allowable for tax relief. The organisation you are a member of must be on HMRC’s ‘Approved professional organisations and learned societies.
Currently, several organisations that offshore workers often belong to are on this list, including:
- Association of Engineering Geologists
- Engineering Council
- Marine Biological Association of the UK
- Institute of Marine Engineering, Science and Technology
- The Science Council
This is not an exhaustive list of relevant organisations by any means and you should check to see if yours is on HMRC’s list.
Other work expenses are often applicable to offshore workers, like laundering uniform, buying equipment, Trade Union membership, purchasing safety wear (including work boots) and the cost of tools for work. As with travel and accommodation, these tax reliefs all apply to you even if you live abroad.
