Tax Refunds for offshore Workers

RIFT GuaranteeOur guarantee means you'll never lose a penny

When you claim an offshore workers tax rebate with RIFT, our unique RIFT Guarantee means that you don't have to worry about the taxman reclaiming any of your money.  So long as you give us full and accurate information, if HMRC disagrees with the amount that we've claimed and ask for the money back, we'll pay it.  It won't cost you a penny.

HMRC TimescalesHow long does it take to get my tax refund?

It takes about 8-10 weeks for HMRC to process your tax rebate.  We have 7 dedicated tax relief teams working hard to maximise your refund and get it to you fast.  The sooner you start your claim and provide all the information we need, the sooner you get your cash back. 

Offshore Tax RefundsTravel expenses for oil rig workers

If you're working offshore on an oil rig, you're probably on the hook for more than just travel and accommodation costs. There's a wide range of tax deductions for oilfield workers on offer, depending on your circumstances, you might also be owed tax relief on things like:

• Laundry and maintenance of your specialised work clothing.
• Upkeep and replacement of any essential tools you need for your job.
• Subscription fees to professional bodies.
• Hotel costs - you may find yourself stuck in a hotel the night before you head out to the rig.
• Expenses whilst waiting to fly out.

If you don't fancy the idea of keeping track of all the available tax deductions for offshore workers, you could still make an ofshore tax rebate claim. The Flat Rate Expenses scheme can help simplify things by listing specific amounts of tax relief you can claim for common costs. You may not get back everything you're owed, but it can take some of the bookkeeping our of the process.

Refunds Aren't Just for 'Rig Workers'Offshore tax refunds: not just for 'roughnecks and roustabouts'

No matter what your job title is, working offshore means you can claim tax refunds on your travel and other costs. The same rules apply to everyone from mechanics and electricians to cooks and waiters.  You're still travelling out to a "temporary workplace", so you can still get cash back from the taxman for your costs. Examples include:

• Toolpushers, admin and communications officers
• Divers and subsea engineers
• Kitchen assistants, chefs, stewards, cleaners and painters

What you can claim tax back on depends on more than just the distance you've travelled. Depending on your job, there may be many other expenses that count toward your refund. For example, an SAP Planner or Crane Operator heading out to a rig might need to use a combination of personal and public transport. An overnight stay in a hotel might be necessary, along with food costs.  Cleaning, replacement and repair of your specialised clothing, tools or safety gear can also entitle you to money back. Here are a couple examples of claims made by RIFT clients working offshore in other kinds of roles:

• Offshore catering customer: annual tax refund of £1,312.89
• Offshore cleaning customer: total tax refund of £705
• Husband and wife team working as a rigger and stewardess: total tax refund of £3,836.02 between them.

If you're living somewhere else but paying UK tax on your income, you may still qualify for a refund. In fact, in many cases your refund will be even bigger as a result.  Talk to RIFT to discuss your circumstance and to see what you could claim.

Remember to refer your friends and family. If they make a claim with us, you may still have qualify for a tax refund.  In fact, in many cases your refund will be even bigger as a result.  Talk to RIFT to discuss your circumstances and to see what you could claim.

Offshore Tax RefundsWhat is double taxation? Does it affect my oil rig worker tax refund?

Double taxation is what happens when you pay taxes in two countries for the same income. Taxation laws vary from one country to another. If you're a UK resident but work somewhere else, it's possible to get stuck paying more than one set of taxes. The same goes for non-UK residents working here. This is a situation that can crop up easily when you're working offshore. 

To try to make sure that people don't end up paying tax in more than one country, the UK has some "double taxation agreements" in place. These agreements determine which territory takes priority for tax on the income. Sometimes, you get a special tax relief from one of the territories involved to make up for the extra tax you're being charged. The rules vary between countries, so get in touch with RIFT to find out exactly what your situation is.

Uniform tax refundsI work offshore. Am I owed a tax refund for my work clothing expenses?

Offshore work is tough on your clothes, and can mean taking care of life-saving safety gear. If you're paying for the upkeep of things like this yourself, you could be owed tax back. How much you can claim for varies with your job and circumstances.

If you're paid and taxed PAYE, your clothing expenses claims will come from:

• Upkeep and replacement of your necessary work clothes.
• Upkeep and replacement of your vital safety gear.

It's important to understand the fine details here. Anything you claim for has to be necessary for you to get your job done. If you wear a specific uniform, then you can claim tax relief when you pay to maintain or replace it. Whatever you're wearing when you're not on the clock won't count. You also can't claim for actually buying the clothes or gear in the first place.

Self-employed people have a whole different system for working out their allowable expenses. When they file their tax returns, any essential costs of doing business count against their taxable income. That means they can claim for initial purchase costs as well as upkeep.

It doesn't have to be a massive headache to claim your uniform, clothing or gear expenses. In fact, you have the option to use HMRC's estimated figures instead of your own. If you're on PAYE, you can use a "flat rate deduction" to make your expenses claim. Meanwhile, self-employed people can opt for the "simplified expenses" system. If you decide to go this route, you probably won't get back all the tax you're technically owed. On the other hand, you won't have to worry so much about receipts and paperwork. Have a chat with RIFT if you're not sure what to do. We'll take a look at your situation and tell you what your best move is.  To make the first step, answering our 4 easy questions will put your on the path to getting your Offshore worker tax rebate.

Tax returnsSelf assessment tax returns with RIFT

What is a tax return and how much tax do I owe? It's a common question, and there are a few ways to work out how much tax you should be paying. If you're employed then tax will be taken from your salary by your employer using your tax code. If you have other sources of income, though, you may have calculations to make to work out your tax return. If you file your own self assessment tax returns those little details can be difficult to get right and dangerous to get wrong.

If you're self-employed you should get yourself registered as self-employed as soon as possible after you start trading. The deadline's the 5th of October in the year you started your self-employment. Miss that, and you're risking self assessment tax return penalties based on the potential lost tax. However, with RIFT on your side we can ensure that your tax returns are in safe hands.

FAQsOur most popular offshore questions

• I pay for a taxi from hotel to heliport, can I claim for this?

  Yes, as long as you’ve got a receipt from the taxi driver.

  We can’t claim without the receipt because prices can vary a lot and we need evidence of your actual expenses for HMRC. We can only claim for the actual taxi rides you made, not the average cost between two destinations.

  Have a look at our checklist of the documents or paperwork we'll need for your claim.

  Use our tax calculator to see if due a tax refund for your travel and expenses.

• I get a helicopter to my rig which I don’t pay for, can I still make a claim?

  Yes, we claim the mileage from your home to the heliport.

  Use our tax calculator to see how much you could claim back.

• Is claiming a tax refund the same as Seafarer’s Earnings Deduction?

  No this is completely different. Seafarers deduction deals with residency issues and how many days you are out of the country. Our claim is for your travel from your home to the heliports.

  Tax refunds aren't just for offshore travel expenses, either. The tax rules also allow offshore workers to claim for hotel bills and a number of other expenses. If you're footing those bills yourself, you could be due some cash. Working offshore is challenging enough already. You don't need the taxman drilling deeper into your wages than he's supposed to.

  Use our tax calculator to find out if you're owed a refund.

• I stay in a hotel the night before I leave for the rig, can I claim this back?

  Yes, as long as you’ve got the receipt.

  We can’t claim without the receipt because costs for hotels can vary a lot, even for the same room on different dates.

  We need evidence of your actual expenses for HMRC. We can only claim for the actual stays you made.

  Have a look at our checklist of the documents or paperwork we'll need for your claim.

• I travel home fortnightly, is it worth me claiming?

  Definitely. Most of our offshore clients work two weeks on, two weeks off and we can claim on average £700 - £900 per year.

  Use our tax calculator to see if you're owed anything for the past 4 years.

• What if I can’t remember what rigs I’ve been to?

  If you’re having any problems with getting your travel history, we've listed 2 possible options below:

  • If your employer has contractor access to Vantage, they may be able to provide this information for you.
  • Use our free ‘Forms by Phone’ service and our experienced team will assist you with completing this information.

  Don’t worry to much if you can’t remember everything, we don’t need exact dates and locations for your first claim, just give as much detail as you can.

  By the time you come to make any future claims you'll know what to keep each year so we'll probably be able to claim a lot more for you.