Burgess Crew Services (Guernsey) are able to make social security contributions to the UK only at this time. Most countries in the world that have a similar scheme in place will have a reciprocal agreement with the UK (see the links below regards reciprocal agreement countries). Social security can be paid to the UK and then, provided there is a reciprocal agreement, the contributions may be transferred once the crewmember returns permanently to their place of residence/domicile.
Crew members employed by Burgess Crew Services (Guernsey) have the means to have social security payments deducted from their salary. Crew members wishing to pay social security need to have a National Insurance number. We can move crew with an NI number onto a scheme directly.
Crew members who do not have an existing NI number will need to apply for one which we are happy to assist with. This will be a Guernsey NI number which will only be useable in Guernsey.
Until we receive confirmation stating otherwise crew members wishing to pay NI will pay Class 1 NI contributions (currently 11%) until a notification is received from HMRC stating otherwise.
If a crewmember pays UK National Insurance HMRC will receive an annual P60 at the end of the tax year (April). The P60 states total earnings for the year and social security contributions deducted and paid. If it is the aim of the crewmember to move social security contributions under a reciprocal agreement they should keep copies of this form, replacement forms cannot be given.
A copy of the P60 will be provided to the crewmember and a copy sent to HMRC. If a crewmember paying NI is resident / domiciled in the UK then they will very likely be contacted by HMRC in order to complete a tax return for that year. If they are resident or domiciled elsewhere in the EU or EEA then HMRC may request proof of payment of tax or proof of exclusion of payment of tax.
It is appreciated that some crewmembers may believe this is a concern, however as long as all the requirements as a mariner/crewmember are fulfilled according to HMRC guidelines, tax should not be payable. Please note that tax is a personal matter and Burgess Crew Services (Guernsey) as the Employer cannot assist crewmembers with tax returns. It is strongly recommended that crewmembers use a maritime experienced accountant such as Seatax (there are other maritime accountants available).
Social Security or National Insurance (NI) as it is known in the United Kingdom was initially a contributory system of insurance against illness and unemployment, and later also provided retirement pensions and other benefits. This is split between an Employer and an Employee contribution where contributions are deemed necessary. In certain circumstances only an Employee contribution is required (see below the 'Yachts in Build' section where this may be applicable for seafarers).
Tax is a financial charge or levy imposed on a taxpayer and is a personal matter related to a crewmember. The Employer does not get involved with tax matters.
Depending on how much time the crewmember spends residing ashore in Europe as opposed to onboard the yacht they may need to pay Class 1 contributions (up to 11% of their monthly salary) or voluntary contributions which can be as low as £12.05 per week. In order to find out what contributions a crewmember may make they will need to discuss this with HMRC directly.
For further information regards mariners social security payments please see the following internet link: http://www.hmrc.gov.uk/cnr/seafarersni.htm.