If there’s one job where you can save a lot of tax, or even all
of it, it is working offshore in the oil and gas industry.
If your country of residence has a Double Taxation Agreement
with the UK, you can also claim relief under the agreement.
But whether or not you can claim full relief from UK tax under
Double Taxation Agreement, and in the case of a full-time
employment, depends on several factors. These include your
country/place of physical residence, where the rig/installation is
located, the length of time you spent on the rig, and your
employer’s place of residence, among others.
Under the Double Taxation Agreement, it matters whether the
rig/installation is, whether it is in the UK or non-UK sectors in
the North Sea or other locations. If you stay on the
rig/installation for less than 183 days per tax year, you have
increased chances of getting an oil and gas tax refund.
Depending on your particular circumstances, you may need the SA
Tax Return to claim 100% of tax refund. You may also need a
Certificate of Fiscal Residence in your country. To process an oil
and gas tax refund, you must complete the tax forms and send it to
the UK tax office, along with will P45 or P60 vouchers from your
employer.
As it is vital that you don’t make a mistake in completing the
forms to avoid delays in receiving your refund, it is highly
recommended that you seek advice from tax professionals.
Think you may be due a tax refund from your working
holiday in the UK? Apply here to get your tax
back.