Seafarers

HI, Can someone clarify if seafarers earning above the 50k threshold need to pay the High Income child benefit charge? There doesn't appear to be any clear legislation on this. If the charge is calculated based on "net income" does the following legislation allowing for the deduction of seafarers to apply when calculating net income? S11 ITEPA 2003 327(3) to (5) Thanks, Jenni

Hi Jenni,
The seafarers earnings deduction is removed from your net income, when calculating your adjusted net income.
If your adjusted net income is over £50,000 and so is your partner’s, then whoever has the higher income is responsible for paying the tax charge.
Thank you. 

 

In reality though, if you put the relevant figures on the tax return, no High Income Charge is applied if enough SED is claimed to reduce taxable income to below £50k.