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Merchant Navy officers
Merchant Navy officers
Do we have anyone else out there in the untypical situation of being resident in the UK, but due to working at sea, and working for a major transnational, and qualifying for SED with HMRC trying to run a viable investment portfolio for a pension?
I'm currently using both a SIPP, LISA and Stocks and Shares ISA as shelters but is anyone aware of any additional vehicles I've missed?
I'd be glad of any ideas
K.
I'm currently using both a SIPP, LISA and Stocks and Shares ISA as shelters but is anyone aware of any additional vehicles I've missed?
I'd be glad of any ideas
K.
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- Lemon Half
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Re: Merchant Navy officers
No but I know somewhere to ask. Would you like me to enquire ? It may take some time.
regards,
dspp
regards,
dspp
Re: Merchant Navy officers
Hi Dspp,
I'd be glad of any insights and there's no particular rush, so thank you and looking forward to yours,
Kind regards,
K.
I'd be glad of any insights and there's no particular rush, so thank you and looking forward to yours,
Kind regards,
K.
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- Lemon Slice
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Re: Merchant Navy officers
I think you have all the bases covered.
Being resident in the UK for tax purposes you are treated like any other UK tax payer...with of course the exception that spending more than 6 months outside the UK you qualify for the seafarers deduction.
People will say you are lucky, but we know otherwise.
Being resident in the UK for tax purposes you are treated like any other UK tax payer...with of course the exception that spending more than 6 months outside the UK you qualify for the seafarers deduction.
People will say you are lucky, but we know otherwise.
Re: Merchant Navy officers
Hi Baldchap,
I've found SED a huge boon in the years when I've been eligible for it, the only time it's caused a significant problem was during my mortgage application four years ago. I didn't fit into my bank's affordability pro forma and it took a bit of explaining and some phone calls to their head office. All happily sorted out but not really something I'd like to do again.
In all honesty I'd seriously consider not claiming SED if I could go into the PAYE system and get this state pension-thingy I've heard so much about, I'd be free to make significantly higher SIPP contributions. I'd also cut the cost of a seafarers tax advice service and the mild nuisance of supplying all the documents for my self assessment. I'd happily lose all these interest-free loans, sorry, Payments on Account I hand out twice a year too.
Swings and roundabouts I suppose
Yours aye,
K.
I've found SED a huge boon in the years when I've been eligible for it, the only time it's caused a significant problem was during my mortgage application four years ago. I didn't fit into my bank's affordability pro forma and it took a bit of explaining and some phone calls to their head office. All happily sorted out but not really something I'd like to do again.
In all honesty I'd seriously consider not claiming SED if I could go into the PAYE system and get this state pension-thingy I've heard so much about, I'd be free to make significantly higher SIPP contributions. I'd also cut the cost of a seafarers tax advice service and the mild nuisance of supplying all the documents for my self assessment. I'd happily lose all these interest-free loans, sorry, Payments on Account I hand out twice a year too.
Swings and roundabouts I suppose
Yours aye,
K.
-
- Lemon Half
- Posts: 5884
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Re: Merchant Navy officers
So far I have had no luck on finding any extra goodies. In which case you are in the same boat as the rest of us. I'll let you know if I turn up anything that changes this.
regards, dspp
regards, dspp
Re: Merchant Navy officers
Hi Dspp,
Thanks for having a look, a pair of fresh eyes is always appreciated,
Regards,
K.
Thanks for having a look, a pair of fresh eyes is always appreciated,
Regards,
K.
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- Lemon Slice
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Re: Merchant Navy officers
Kipling wrote: I'd be free to make significantly higher SIPP contributions.
Sorry SIPP's weren't mainstream when I was away.
Could you possibly join the MNPP as well to increase contributions, and then transfer to your SIPP when you come ashore?
Re: Merchant Navy officers
One thing you could try is to put money into either an IT saving scheme or into a brokerage account and by shares as and when.
At the moment you do not need to be restricted by the amount you can put into tax efficient schemes (ISA's etc).
You have as SED which is probably the most tax efficient scheme you will ever belong to. Do not wish to have PAYE so that a SIPP tail can wag the dog.
Savings into IT's or brokerage accounts will also be tax free as will dividends from them. I am not sure if this applies to an SED or if you would have to exceed your annual tax allowance but either way you can build a substantial sum.
Regarding state pension. You could make voluntary contributions to NI. Used to be called Class 3 but I do not know the current terminology.
RE payment on account.
The only time I was asked for it was after a year when I had to pay tax (Had 15 months paid leave owing and took it all). My wife paid the first set of demands for this then I visited my local tax office a basically proved that I would not be a tax payer the following year and so I was not liable for payment on account. They sent all the info to Cardiff Marine who still sent the odd threatening letter. I took these to my local tax office who sorted it all out and I never paid it again. I thought that a decent seafarer's tax advice service would advise you of this. Mine told me that if I was sure that I would not be a tax payer the next year then do not pay it and my local tax office agreed.
I was a seafarer for 38 years and apart from the one year as above I do not remember paying tax since early / mid Eighties.
Do not pay tax if you can avoid it. They will only waste it.
Markab01
At the moment you do not need to be restricted by the amount you can put into tax efficient schemes (ISA's etc).
You have as SED which is probably the most tax efficient scheme you will ever belong to. Do not wish to have PAYE so that a SIPP tail can wag the dog.
Savings into IT's or brokerage accounts will also be tax free as will dividends from them. I am not sure if this applies to an SED or if you would have to exceed your annual tax allowance but either way you can build a substantial sum.
Regarding state pension. You could make voluntary contributions to NI. Used to be called Class 3 but I do not know the current terminology.
RE payment on account.
The only time I was asked for it was after a year when I had to pay tax (Had 15 months paid leave owing and took it all). My wife paid the first set of demands for this then I visited my local tax office a basically proved that I would not be a tax payer the following year and so I was not liable for payment on account. They sent all the info to Cardiff Marine who still sent the odd threatening letter. I took these to my local tax office who sorted it all out and I never paid it again. I thought that a decent seafarer's tax advice service would advise you of this. Mine told me that if I was sure that I would not be a tax payer the next year then do not pay it and my local tax office agreed.
I was a seafarer for 38 years and apart from the one year as above I do not remember paying tax since early / mid Eighties.
Do not pay tax if you can avoid it. They will only waste it.
Markab01
Re: Merchant Navy officers
Hi Baldchap,
Sorry about the late reply,
I think SIPPs have really only moved into the wider awareness in the last five years or so, and obviously they are very welcome.
I've looked into the MNPP - it closed a few years back to new entrants. I guess that's largely wrapped up in the overall decline in UK-based merchant shipping companies and legacy trusts that the pension fund managers can tap for contributions.
K.
Sorry about the late reply,
I think SIPPs have really only moved into the wider awareness in the last five years or so, and obviously they are very welcome.
I've looked into the MNPP - it closed a few years back to new entrants. I guess that's largely wrapped up in the overall decline in UK-based merchant shipping companies and legacy trusts that the pension fund managers can tap for contributions.
K.
Re: Merchant Navy officers
Hi MarkAb01,
Thanks for the advice, I'll certainly look into ITs - have you got any suggestions of where to start?
As a bit of background my situation stems from losing qualifying tax days by sitting around at anchor inside the UK twelve-mile limit too often - that means I'm in the marginal position between being an income tax payer or being SED eligible. I've now managed to get on a ship outside the UK so that should resolve itself into something more clear cut.
Generally, I'd rather pay the Payments on Account as opposed to getting a heart attack inducing demand late on in the year. There's also the danger of being at sea when it happens and having to try to resolve things on a dodgy phone line or internet connection to the other side of the world.
K.
Thanks for the advice, I'll certainly look into ITs - have you got any suggestions of where to start?
As a bit of background my situation stems from losing qualifying tax days by sitting around at anchor inside the UK twelve-mile limit too often - that means I'm in the marginal position between being an income tax payer or being SED eligible. I've now managed to get on a ship outside the UK so that should resolve itself into something more clear cut.
Generally, I'd rather pay the Payments on Account as opposed to getting a heart attack inducing demand late on in the year. There's also the danger of being at sea when it happens and having to try to resolve things on a dodgy phone line or internet connection to the other side of the world.
K.
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