Offshore Workers tax rebate

Are you an offshore worker on an oil rig or gas platform?

You could be missing out on tax rebates you are entitled to. Current tax rules allow offshore workers to claim for travel expenses and possibly other expenses such as hotel costs. Many offshore workers are entitled to claim because they incur the cost of travel and accommodation from their home to an airport or heliport.

Our free offshore worker tax rebate guide answers many of the most popular questions letting you know what can be claimed for and how to claim.

Offshore worker tax rebate rulings

Essentially, if you pay for your own travel to temporary places for work, you are entitled to claim back tax relief on the cost. A temporary workplace is classed as a place of employment which you attend for 24 months of less. This means that if you work on a rig or platform for 24 months or less (or were intended to work for 24 months or less at the start of your contract) you should be eligible to claim.

A claim is still likely if you are paid a travel allowance by your employer.

The rules aren’t simple which is why it’s best to check your eligibility before making a claim. Other tax reliefs are available and you can use our free income tax guides to find out more.

Offshore workers living outside the UK

The rules do become more complicated but this doesn’t mean you are not entitled to make a claim.

What is an offshore worker tax rebate worth

The value of your claim all depends on the amount of travel costs incurred. If you are a higher rate tax payer you should receive 40% (or higher) of the value of your claim as a tax rebate. If you don’t pay tax at the higher rate you should receive a tax rebate worth 20% of the value of your claim.

Offshore workers tax FAQs:

What do I need to do to make a claim?

The main thing  is a list of where you worked and how long you were in each place. If you have forgotten which rigs you’ve been on and you have a Vantage card, you can ask them for a printout of all of your travel.

To make the claim as robust as possible you should look for as many items as possible on the list below:

• Wage slips
• Information confirming the location of your places of employment
• Receipts for any expenses except fuel
• Your contract of employment

How long does it take?

The normal timescale for a first claim is between 6-12 weeks. It can be quicker, sometimes longer depending on HMRC timescales. Making a second claim in the future is usually quicker.

Is it worth claiming if my employer pays some of my travel expenses?

The answer is it depends on what your employer pays you and how you travel. If your employer pays you a travel allowance which is taxed along with your salary a claim is normally allowable.

By Car

If your employer has paid you a non taxable 45p per mile tax free for the first 10,000 miles (and 25p for anything over that) you will not be eligible to claim. If you’ve been paid anything less than 45p and 25p then the difference is claimable. In addition any taxable mileage allowance means a claim is usually possible at the full mileage rates.

By Public Transport

If you’re paid a taxable travel allowance a claim can usually be made. A non taxable travel allowance means only the difference between what you spend and what you are paid can be reclaimed.

I have to stay in a hotel the night before I go back to the rig, can I claim the cost of my room?

Yes, but you will need receipts for this as the cost is variable.

Can I claim my taxi fare from my hotel to the heliport?

Yes, but again you should have receipts for this expense because the price can vary enormously.

My company pays for the helicopter to the rig so can I claim anything travel wise?

Yes, a claim for your mileage from your home to the heliport or airport. Or a claim for public transport cost from your home to the heliport or airport.

I only travel home fortnightly, is it worth making the claim?

Yes! The work pattern is often 2 weeks on, 2 weeks off or something similar.

Will this affect my employer?

No, your tax affairs are between you and HMRC. We deal directly with HMRC and reclaim tax rebates from them not your employer.

Will my tax code change?

Maybe; if it does it is worth checking with HMRC to make sure that why your tax code has changed is correct. If it is not correct you could end up not paying enough tax and owe HMRC at a later date.

How do I claim an offshore workers tax rebate?

You can make an offshore workers tax rebate claim directly with HMRC by completing a form P87. The P87 should be used for claims that are worth less than £2500 in any one tax year.

If you have a claim that is worth £2500 or more you will normally need to complete a self assessment tax return.