How to claim the Fisher Tax Credit and Seafarers’ Allowance in Ireland
Did you know that Irelands seafood industry is worth roungly €1.15 billion to the economy?
It's true! And more than 14,000 men and women are employed in the sector, most of whom work and live in rural coastal communities throughout Ireland.
Many people who work at sea are entitled to claim either the Fisher Tax Credit or Seafarers' Allowance and yet it often goes unclaimed.
The main reason for this is likely a lack of awareness that tax reliefs are available.
A belief that the process of claiming their tax entitlements will be too complicated and 'not worth it'
But when you consider that, by claiming these tax reliefs, you may be able to reduce your tax bill by thousands of euros.
In this guide, you will find everything you need to know about the Fisher Tax Credit and Seafarer's Allowance and how to claim them.
What is the difference between the Fisher Tax Credit and Seafarer's Allowance?
It is important not to get mixed up between the Fisher Tax Credit and Seafarers' Allowance.
The Fisher Tax Credit is available to many workers in Ireland's fishing sector.
Meanwhile, if you work at sea, but are not part of Ireland's fishing sector, you may be able to claim the Seafarers' Allowance. For example, this allowance is commonly claimed by Ferry and Cargo ship workers.
It's important to note that you cannot claim both the Seafarers' Allowance and the Fisher Tax Credit in the same year of assessment.
Fisher Tax Credit - All You Need To Know
How much is the Fisher Tax credit worth?
If you are entitled to the Fisher Tax Credit you will be due €1,270 per year. Like all tax credits, there are a number of qualifying conditions you must meet before you can claim.
In short, if you are eligible for this credit, you can earn up to €22,850 before paying income tax.
How do I qualify for the Fisher Tax credit?
In order to qualify, you must spend at least 80 days fishing at sea. A day is considered a minimum of 8 hours at sea within a 24 hour period. These 8 hours can be accumulated over a number of fishing trips in a 24 hour period.
The vessel used for fishing must be licenced by an EU state and registered at the EU Community Fishing Fleets. Part-time fishers can also qualify for the credit as long as the above criteria is satisfied.
Who is not eligible for this credit?
The type of fishing covered under the tax credit includes any kind of fish found in the sea. It does not include salmon, freshwater eels or aquaculture animals. And, if you are fishing solely for scientific, research or training purposes, you will not qualify.
The average Irish tax refund is €1,880
Seafarers' Allowance - Useful Factors To Consider
How much is the Seafarers' Allowance worth?
If you are eligible for Seafarers' Allowance you will be entitled to claim €6,350 at your highest rate of tax (20% or 40%) against your Seafarer income. You can't use the allowance against any other income.
How do I qualify for the Seafarers' Allowance?
You may be entitled to the Seafarers' Allowance if you are working in the marine industry such as on a:
· Ferry
· Drill Ship
· Cargo Ship
· Cruise Ship
· Oil Rig
In order to qualify for this allowance, you must be at sea for at least 161 days in the course of the year.
While on an international voyage you must carry out your work onboard a sea-going ship. The ship must be registered in the shipping register of an EU member state.
You must be a Public sector employee and you must not have claimed split year treatment in respect of the income earned.
The voyage must also begin or end in a port outside Ireland.
Who is not entitled to the Seafarers' Allowance?
You will not be entitled to claim this tax relief if you work on a fishing boat.
If you work on a fishing boat, it is more likely that you will be entitled to claim the Fisher Tax Credit.
Who can help me claim my tax entitlements?
Need a hand claiming your tax entitlements?
Our tax experts at Taxback.com will ensure you avail of every tax relief you're due and that you receive your maximum tax refund.
In fact, our average Irish tax refund is €1,880 so it's definitely worth claiming what you're owed!
What's more, if you have missed out on claiming you're entitlements in the past, we can claim your tax back from the previous 4 years!
Why Taxback.com?
· Maximum tax refund guaranteed
· No tricky forms – easy online process
· We'll transfer your refund straight to your bank account
· 24/7 Live Chat tax support
The average Irish tax refund is €1,880
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