New queries, issue 4451

Exemption entitlement

Is a personal service company employee entitled to the seafarers’ exemption?

We have recently acquired a new client who works on vessels that repair oil rigs. His role is completely on board the ship monitoring the divers carrying out the repairs and he does not set foot on the rigs themselves.

The client has set up a limited company to receive the income from this work and has been advised by another accountant that he will not be entitled to the seafarers’ exemption if he is working for his own company.

We cannot see why he would not be entitled to the exemption since it is likely that he will be meeting all the criteria set for the exemption to apply and ITEPA 2003 s 384 merely refers to the exemption applying to an employment.

There does not appear to be any...