Tax Deductibles For Oil & Gas Workers – TaxBack

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Tax Deductibles For Oil & Gas Workers

Oil & Gas Workers: What They Can Claim?

The professional life for an oil and gas worker can be hard, but
there are certain benefits with the job. This is especially true if
you work in the North Sea because you can save a lot of taxes and,
in some cases, even all of it.

Oil & Gas

If you are from a country with double taxation agreement with
the UK, you will be able to claim tax relief as well when working
for a company based here.

If you are employed full time on offshore installations in the
oil and gas industry, you could be entitled to a full tax relief,
depending on the following:

  • Your domicile or residency
  • Location of the rig or installation (non-UK sectors of the
    North Sea, UK sectors, UK sectors of the Continental Shelf,
  • Total time spent on the rig per year
  • Residency of employer (UK company or not)

When it comes to the total time spent on a rig, it is best to
keep it under 183 days within a tax year.

On the terms of Double Taxation Agreement (DTA)

  • If you work for an overseas-based employer and are out of the
    UK long enough, DTA will exempt you from paying tax.
  • If you are working in the Continental Shelf, the location must
    be specifically mentioned in the DTA for you to be regarded as
    working in the UK.
  • An oil and gas Landman is considered a UK resident for tax
    purposes by some DTA terms if he works in the designated area of
    the UK sector of the Continental Shelf.

What Oil and Gas Workers Can Claim For


Meals are generally 50% deductible. But it can be deductible by
100% if the meal is for the convenience of the employer. That is, a
worker is able to continue his work because of the meal


Travel expenses for oil and gas workers are deductible,
depending on the job assignment, whether it is permanent or
temporary. It is considered permanent if the work would last for a
year or longer. In this case, travel expenses are not deductible.
If the job assignment only lasts for a year or less, it is
considered temporary and travel expenses are deductible, which can
make a significant difference in the amount of tax that must be

In the event that an employer pays some of the travelling
expenses, the worker can still file for claim. The only exception
is when the employer pays travel expenses in full or the 45 p per
mile for the first 10,000 miles in a year.

Temporary Stay On Location

Some oil and gas workers stay on the rig for the entire job
assignment, while others travel home every two weeks. The latter is
still eligible for a tax claim. Most of short employees work 2
weeks on and 2 weeks off can claim an average of £700 to £900 per

Other deductibles include:

  • Cost of overnight stay in a hotel before leaving for the rig.
    Receipt is required to make a claim.
  • Fare on public transport and taxi fare from hotel to heliport.
    Requires a receipt.

It is vital that an oil and gas worker presents the SA tax
return to claim 100% tax back. P45/P60 vouchers from an employer
(s) are also required. Because the rules of tax relief are quite
complicated, it is highly recommended that employees seek help from
tax experts.

Contact us to find out
exactly how much tax you can claim and we can follow it up and get
you your money back quickly!

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