Meet Steven – Chief Engineer, Tugs
- Nationality: British
- Residence: Spain
- Employer: UK tug-company
- Work location: British vessels in UK waters
The Problem: Taxed Twice
Steven’s payslip looked normal on the surface—UK PAYE deductions just like any other seafarer employed by a British firm.
But living in Spain meant the Spanish tax authority also wanted a slice of the same income. Every payday Steven was:
- Taxed at source in the UK, and then
- Taxed again in Spain under the country-of-residence rule.
That’s the textbook definition of double taxation—and it was draining his hard-earned salary.
Enter Cfarertax
Steven asked Gary at Cfarertax for seafarers tax advice.
- Gary confirmed Steven didn’t qualify for Seafarers Earnings Deduction (SED) because he worked in UK waters.
- But he did uncover the double-tax trap and the UK–Spain treaty article that could fix it.
The Fix: Zero-Tax Band & Retro Refunds
- Claimed back three full years of UK tax already paid.
- Applied the double-taxation treaty so HMRC recognised Steven’s Spanish residence.
- Changed his UK tax code to “zero”—no more PAYE on future tug rotations.
“It felt backwards—getting UK tax refunded while still based in the UK part-time—but it worked,” Steven says.
The entire reclaim went through HMRC; no dealings with Spanish Revenue were needed, saving Steven a language headache and months of paperwork.
Results at a Glance
| Before CFarer Tax | After Seafarers tax advice |
| UK PAYE deducted every month and income taxed again in Spain | Three-year UK tax refund plus zero PAYE going forward |
| Endless forms and treaty jargon | Cfarertax handled everything end-to-end |
| Reduced take-home pay, constant frustration | Higher net salary, no double-tax worries |
Steven, Chief Engineer:
“I honestly didn’t know you could do that—one call, the right seafarers tax advice, and my payslip is finally my own.”
Think you’re paying tax twice?
Get the same seafarers tax advice that rescued Steven’s pay.
👉 Find out more here
