Did you know that over 200,000 UK nationals work offshore globally each year, with sectors like oil, gas, and renewables offering salaries up to 50% higher than onshore roles – yet many face unexpected tax pitfalls without proper planning?

Key Areas We Will Cover

• What working offshore truly means for UK residents
• Key benefits, challenges, and popular destinations
• Tax implications, including residence rules and double taxation
• Visa, compliance, and health and safety requirements
• How Futurelink Group supports offshore workers with payroll and tax
• Step-by-step preparation checklist
• Frequently asked questions for seamless transitions

Introduction

Working offshore involves employment on oil rigs, wind farms, cruise ships, or other international platforms outside UK territorial waters, often in rota systems like 2 weeks on, 2 weeks off. This guide to working offshore is vital for UK contractors seeking high-earning opportunities abroad while maintaining tax compliance and personal wellbeing. Going beyond basic overviews, we explore real-world strategies, HMRC guidelines, and expert support from Futurelink Group to help you maximise earnings and minimise risks.

What Does Working Offshore Mean?

Offshore work typically refers to roles in extractive industries, renewable energy, maritime, or remote installations beyond the UK’s 12-nautical-mile limit. Common positions include riggers, engineers, divers, medics, and catering staff.

Rotational schedules dominate:

• 14/14 (14 days on, 14 off)
• 21/21 for deeper waters
• 28/28 in extreme locations

Platforms operate 24/7, demanding physical fitness, specialised certifications (e.g., BOSIET for survival training), and adaptability to isolated environments.

“Offshore work is not just a job; it is a lifestyle that rewards resilience with premium pay and unique experiences,” notes an industry veteran from the North Sea.

Benefits and Challenges of Offshore Employment

Benefits

• Lucrative Salaries: Entry-level roles start at £40,000–£60,000 annually; specialists earn £100,000+
• Tax Advantages: Potential for Seafarers’ Earnings Deduction (SED) if qualifying as a seafarer
• Perks: Free accommodation, meals, travel, and extended leave periods
• Career Growth: Rapid progression with globally recognised qualifications

Challenges

• Isolation: Limited family contact and harsh conditions
• Health Risks: High injury rates; mandatory medicals required
• Irregular Hours: 12-hour shifts in all weathers
• Job Volatility: Tied to commodity prices and green transitions

Balancing these factors is key to long-term success.

Popular Offshore Destinations for UK Workers

Destination	Primary Sectors	Average Rota	Key Attractions
North Sea (UK/Norway)	Oil, Gas, Wind	14/14	Proximity to home, SED eligibility
Middle East (Qatar, UAE)	Oil, LNG	28/28	Tax-free local earnings
West Africa (Nigeria, Angola)	Deepwater Oil	28/28	High hazard pay
Asia-Pacific (Australia, Singapore)	Renewables, FPSO	21/21	Modern facilities
Arctic Regions	Exploration	Variable	Premium rates for extremes

Choose based on experience, family needs, and tax residency goals.

Tax Implications for UK Offshore Workers

HMRC treats offshore income differently based on residency and duties.

UK Tax Residency

• Statutory Residence Test (SRT): If you spend fewer than 46 days in the UK annually, you may become non-resident
• Non-residents pay UK tax only on UK-sourced income

Seafarers’ Earnings Deduction (SED)

• 100% tax relief on earnings if:
  • Employed on a ship
  • Duties performed wholly outside UK waters
  • At least 365 days in qualifying periods (with no more than 183 consecutive days in one location)
• Claim via Self Assessment; requires detailed logs

Double Taxation Agreements

Over 130 treaties prevent dual taxing; claim relief in the host country or via HMRC form DT-Individual.

Keep meticulous records: payslips, travel itineraries, and platform logs.