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NIM29005 | Special cases: Class 1 - mariners: EEA exception examples

From HM Revenue & Customs · National Insurance Manual

Note: This page is under review and the content may only be appropriate to periods beginning before 1 January 2021 and for those covered by a Withdrawal Agreement. A new International NICs manual is under development and will be published in due course.

Periods up to 1 May 2010

  1. A mariner remains liable for Class 1 NICs if they are posted by their normal UK employer to a ship flying the flag of another EEA state provided the normal posting rules are satisfied - see NIM33007

Example

An EEA mariner is employed on board a UK flagged vessel. They are posted to work temporarily on a French vessel for ten months. They will remain subject to UK legislation and pay Class 1 NICs

  1. A person remains liable for Class 1 NICs if they are not normally employed as a mariner at sea and:

  • employed other than as a crew member on a ship flying the flag of another EEA state; and

  • they are employed as a mariner on that ship only while it is in a UK port or UK territorial waters.

Example

A person is normally employed as a joiner in the UK. They are employed to work on a French flagged ship while it is in a UK port. They will remain subject to UK legislation and pay Class 1 NICs

  1. A mariner remains liable for Class 1 if they work on board a ship flying the flag of another EEA state but they are resident in the UK and are paid by an employer or other person whose registered office or place of business is in the UK.

Example

An EEA national is resident in the UK. They are employed as a crew member on a French flagged vessel but actually paid for the duties performed as a mariner by a company who has a place of business in the UK. The mariner will remain subject to UK legislation and pay Class 1 NICs.

In examples 1 and 3, form E101 should be obtained by the employer - see NIM33007

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Example 4

Steve lives in the UK and works as a mariner on a Dutch flagged ship. His wages are paid to him by a shipping company agent based in Southampton. Although the ship is Dutch flagged, Steve is subject to UK legislation and will pay Class 1 NICs because the agent paying his wages is based in his country of residence. The agent will be deemed to be his employer for UK NICs legislation purposes.

A person who comes within the exception must obtain form A1 or E101 from the country of residence.