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National Insurance (NI) - UK London Flagged Vessel
Tim Collins
Posted: Thursday, June 4, 2009 6:24 AM
Joined: 24/06/2008
Posts: 2

We are a UK London registered commercial yacht with a UK registered owning company.

I have been informed that all crew which are EU citizens are required to register with Inland revenue UK and are liable for National Insurance contributions (NI).

What is the proceedure with this?

Will the EU crew member be also liable for income tax contributions?

Vessel cruises outside the UK but in EU waters. 

Where can I obtain more information before filling out the forms and registering with inland revenue?

Is there anything that the owning company / management could do regarding avoiding this.

Tim Collins
Posted: Thursday, June 4, 2009 3:41 PM
Joined: 19/05/2008
Posts: 52

Hi Tim. It’s easy to make sweeping statements about whether you should or should not pay National Insurance (aka ‘NI’ or Social Security) contributions. In fact, this is governed by no less than four factors: (i) The crewmembers’ nationality; (ii) The yacht’s flag; (iii) Where the yacht cruises; and (iv) Where the yacht’s owning company is registered. For this reason, not only is situation different from yacht to yacht, it is different from crewmember to crewmember, and it is therefore impossible to reach conclusions except for individual cases, which takes a great deal of research. Most crewmembers assume that because they’re not liable to income tax they’ve NI exposure, but this is not necessarily the case. Don’t forget that it may be beneficial to pay voluntary NI contributions even if you don’t have to, as eligibility to state pensions, for example, for require a certain level of contributions. Benjamin Maltby. MatrixLloyd.
 Average 5 out of 5