Employment on UK continental shelf

By Tolley in association with Jim Yuill at The Yuill Consultancy
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The following Employment Tax guidance note by Tolley in association with Jim Yuill at The Yuill Consultancy provides comprehensive and up to date tax information covering:

  • Employment on UK continental shelf
  • Position up to 5 April 2014
  • Position from 6 April 2014

From 6 April 2014, significant changes were made to the NIC position of individuals working on the UK Continental Shelf (UKCS) who are engaged in activities covered by the Petroleum Act 1998, s 11(2) (subscription sensitive). In simple terms this is anyone involved in the exploration for, or extraction of, oil and gas from the seabed.

Position up to 5 April 2014

Until 5 April 2014, mariners engaged in such activities had their NIC liabilities determined using the special mariner rules in SI 2001/1004, Part 9, Case C. This meant that mariners who fell within NIC liabilities and had an employer with no place of business in the EU were deemed to be resident in the UK and only the primary (employee’s) contribution was payable. For non-mariners working on the UKCS, Case B of the above regulations applied and it was quite common that only the employee share of the contribution was payable.

Position from 6 April 2014

Since 6 April 2014, the amended SI 2001/1004, reg 114 means that all employees on the UKCS, including mariners who are engaged in oil and gas related activities on an installation, will be deemed to be resident in the UK and liable to pay primary NIC. There will also be a secondary liability and the legislation determines the secondary contributor as:

    More on International aspects of NIC: