Offshore Worker Tax Calculator

How offshore pay is calculated

Most North Sea workers are paid on a day-rate basis — a fixed amount per day on the platform, including weekends and public holidays. Multiply your day rate by the number of days worked per year (determined by your rotation pattern) to get your annual gross.

A typical 2/2 rotation (2 weeks on, 2 weeks off) gives 26 hitches per year × 14 days = 182 days offshore. At £650/day, that’s £118,300 gross — firmly in Scotland’s Higher and Advanced rate bands.

Scottish income tax at offshore pay levels

At £80,000–£120,000, most Scottish offshore workers are split across the 42% Higher (£43,663–£75,000) and 45% Advanced (£75,001–£125,140) bands. Unlike England, where the entire range up to £125,140 is taxed at 40%, Scotland’s higher rates mean a meaningful additional cost.

Example: £100,000 gross, £5,000 pension. Taxable: £95,000. Scottish tax: approximately £36,000. NI: approximately £5,500. Take-home including pension: approximately £53,500. Effective rate including pension: 46.5%.

Tax-exempt allowances

Offshore workers can benefit from a range of HMRC-approved tax-exempt allowances. The offshore platform is treated as a “temporary workplace,” which allows subsistence and travel payments to be paid without income tax or NI. Your employer should advise what approved allowances are available.

Pension: the most effective planning tool

At 42–45% Scottish rates, pension contributions deliver exceptional value. Contributing through salary sacrifice (if your employer scheme allows it) saves income tax AND employee NI — a combined saving of approximately 50p per £1 contributed.

Workers with income above £100,000 should prioritise pension contributions to restore the Personal Allowance. A £10,000 contribution from £110,000 income saves approximately £6,750 in income tax — an effective relief rate of 67.5%.

Inside vs outside IR35

Most UKCS roles are assessed as inside IR35 following the 2021 off-payroll working rules. If your engagement is inside IR35, you’re taxed as an employee regardless of whether you operate through a limited company. An umbrella company or direct employment is usually the simpler approach for inside-IR35 roles.