NIM74050 | Class 2 National Insurance contributions: special cases: divers and diving supervisors

Section 2(1) of the Social Security Contributions and Benefits Act (SSCBA) 1992

Regulation 92 of the Social Security (Contributions) Regulations (SSCR) 2001 (SI 2001 No. 1004)

Section 15 of the Income Tax (Trading and Other Income) Act (ITTOIA) 2005

S15 of ITTOIA 2005 provides that earnings from employment as a diver or diving supervisor in the United Kingdom (or a designated area which are concerned with the exploration or exploitation of the seabed, subsoil and their natural resources) are taxable as trade profits and not as employment income – see BIM53951.

The employment status of divers follows the normal status rules and in most cases they are considered to be employees for NICs purposes.

If they are self-employed, these divers would usually incur a liability for Class 4 NICs under section 15 SSCBA 1992. However, certain divers and diving supervisors covered by s15 of ITTOIA 2005 are expressly excepted from Class 4 NICs liability under regulation 92 of SSCR 2001.

Following the changes to Class 2 and 4 NICs from 6 April 2015, such earners will continue to not be liable for Class 2 NICs up to 6 April 2024 even if they have profits chargeable to income tax under Chapter 2 of Part 2 ITTOIA 2005 and will not be eligible to have Class 2 NICs treated as paid. From 6 April 2024 there is no liability to pay Class 2 NICs.