BDO highlights tax and social security issues in crewing

UK tax and social security legislation for crews, and other specialist workers that operate offshore, is complex and withdrawal from the EU may only add to this complexity. As the economy emerges from lockdown, HMRC will be focusing on the shipping sector, amongst others, to ensure it is compliant and the correct liabilities are being met.

BDO is committed to helping you to build resilience into your business and realise all opportunities as we course the path towards recovery. The following six issues should be considered:

1. Connection: You will need to consider whether there is a UK connection based on residence or funding arrangements for crew members
2. Crewing arrangements: It is important to identify whether payments to crew are falling outside the scope of the UK NIC
3. Withdrawal from the EU: From 1 January 2021 matters regarding engagement of European crew members in the UK could become extremely complex
4. Coronavirus Job Retention Scheme (CJRS) and Furlough errors: As the furlough scheme ends HMRC have introduced a new penalty regime which could significantly impact your crews, or workforce
5. Worker status: Defining the status of ‘worker’ is a complex process. HMRC will be focusing on finding potential errors
6. The wider picture: CCO compliance is essential if you are using offshore crewing arrangements.

For more information download here.