NIM29020 | Special cases: Class 1 - mariners: DL Earnings Periods - irregular

Regulation 120 of the Social Security Contributions Regulations 2001 (SSCR 2001) (SI 2001 No 1004)

Where a mariner receives a general settlement of his earnings at the end of a voyage (and not a regular payment of earnings, see NIM29019) the earnings period is determined by the voyage period. If the mariner is paid a lump sum at the end of a voyage, or series of voyages, the earnings period depends on whether:

• the voyage(s) began or ended in the same tax year; and

• during the voyage(s) there has been a relevant change, or changes, in the mariner’s circumstances that involved a new category letter, for example, they reached state pension age.

Calculate the NICs payable on these earnings according to the number of weeks the voyage lasted.

If the voyage lasts:

• less than a week, treat it as a week; or

• longer than a week, or a number of complete weeks, by more than three days treat those days as an additional week. Ignore periods of three days or less.