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PART 9U.K. SPECIAL CLASSES OF EARNERS

Case B—U.K. Continental Shelf F1

Textual Amendments

F1The enabling power for this Case is section 120 of the Act; there is no equivalent provision in the Social Security Contributions and Benefits (Northern Ireland) Act 1992. However, contributions in respect of employment on the Continental Shelf would fall to be treated as satisfying the corresponding requirement in Northern Ireland by virtue of Article 2 of the Memorandum set out in Schedule 1 to S.I. 1976/1003 and Schedule 1 to S.R. 1976 No. 196. Article 2 of the Memorandum was amended by paragraph 3 of the first letter in the Schedule to S.I. 1999/2227 and S.R. 1999 No. 350.

Application to employment in connection with continental shelf of Part I of the Act and so much of Part VI of the Act as relates to contributionsU.K.

114.—(1) For the purposes of section 120 of the Act (employment at sea (continental shelf operations)) F2, prescribed employment shall be any employment (whether under a contract of service or not) in any area which may from time to time be designated by Order in Council under section 1(7) of the Continental Shelf Act 1964 F3, where the employment is in connection with any activity mentioned in section 11(2) of the Petroleum Act 1998 F4 in the designated area.

(2) Where a person is employed in any employment specified in paragraph (1), the provisions of Part I of the Act and so much of Part VI of the Act as relates to contributions shall, subject to the provisions of paragraph (3), apply as though the area so designated were in Great Britain, and notwithstanding that he does not satisfy the conditions as of residence or presence in Great Britain prescribed in regulation 145(1)(a).

(3) Where a person employed in any employment specified in paragraph (1) is, on account of his being outside Great Britain by reason of that employment, unable to perform any act required to be done either immediately or on the happening of a certain event or within a specified time, he shall be deemed to have complied with the requirement if he performs the act as soon as reasonably practicable, although after the happening of the event or the expiration of the specified time.

[F5(4) Where a continental shelf worker is employed in any employment specified in paragraph (1) and that employment is on or in connection with an offshore installation the secondary contributor is—

(a)where the employer is present in Great Britain, the employer; or,

(b)where the employer is not present in Great Britain but has an associated company present in Great Britain, the associated company; or,

(c)where the employer is not present and does not have an associated company present in Great Britain, the oil field licensee.

Where the employer has more than one associated company present in Great Britain the associated company to which sub-paragraph (b) applies is the company which has the greatest taxable total profit within the meaning of section 4 of the Corporation Tax Act 2010 for the accounting period which precedes the tax year in which the contributions are due.

(5) The modifications in paragraph (4) do not apply to a continental shelf worker—

(a)who is employed in a capacity described in Column (A) of Table 1,

(b)who holds a certificate of a description in Column (B) of that table, and

(c)whose presence on the ship is required in order to meet the requirement of [F6regulation 55(2)(c) of the Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2022].

Table 1
[F7Column (A): capacity in which the continental shelf worker is employed[F7Column (B): description of the certificate
Master or chief mate on a ship of 3000 gross tonnage or more.A certificate which complies with [F8regulation 7] of the Merchant Shipping Regulations.
Master on a ship of between 500 gross tonnage and 2999 gross tonnage not engaged on near-coastal voyages.A certificate which complies with [F8regulation 7] of the Merchant Shipping Regulations.
Chief mate on a ship of between 500 gross tonnage and 2999 gross tonnage.A certificate which complies with [F8regulation 7] of the Merchant Shipping Regulations.
Officer in charge of an engineering watch in a manned engine-room, or designated duty engineer officer in a periodically unmanned engine-room, on a ship powered by main propulsion machinery of 750 kilowatts propulsion power or more.A certificate which complies with [F8regulation 7] of the Merchant Shipping Regulations.
Chief engineer officer and second engineer officer on a ship powered by main propulsion machinery of between 750 and 3000 kilowatts propulsion power.A certificate which complies with [F8regulation 7] of the Merchant Shipping Regulations.
Rating forming part of a navigational watch on a ship of 500 gross tonnage or more (who is not under training and whose duties are skilled in nature).A certificate which complies with [F9regulation 17] of the Merchant Shipping Regulations.
Rating forming part of an engine-room watch or designated to perform duties in a periodically unmanned engine-room on a ship powered by main propulsion machinery of 750 kilowatts propulsion power or more (who is not under training and whose duties are skilled in nature).]A certificate which complies with [F10regulation 18] of the Merchant Shipping Regulations.]

(6) In Table 1 “Merchant Shipping Regulations” means [F11the Merchant Shipping (Standards of Training, Certification and Watchkeeping) Regulations 2022].

(7) To the extent that where this regulation and regulations 115 to 125 (case C Mariners) apply, this regulation takes precedence.]

Textual Amendments

F2Section 120 was amended by paragraph 70 of Schedule 7 to the Social Security Act 1998 (c. 14) and paragraph 26 of Schedule 3, and paragraph 8 of Schedule 7 to the Transfer Act.

[F12Continental shelf workers: provisions relating to certificatesU.K.

Textual Amendments

Application for certificateU.K.

114A.—(1) An employer who meets the conditions in paragraph (2) may apply to HMRC for the issue of a UKCS continental shelf workers certificate.

(2) The conditions are that—

(a)the employer supplies or intends to supply a continental shelf worker for whom the secondary contributor, under regulation 114(4) (application of Part 1 and Part 6 of the Act to employment in connection with the continental shelf), is the oil field licensee;

(b)the employer has or intends to have a contractual relationship under which the employer acts, directly or indirectly, as an agent of the oil field licensee for the purposes of National Insurance; and

(c)the employer or an associated company has not had a certificate cancelled previously for a failure to comply with their obligations and responsibilities under regulation 114B.

(3) An application under this regulation must be made in writing and must include—

(a)the name and address of the employer and employer’s PAYE reference;

(b)the name and address of a person in Great Britain who is authorised to accept service on behalf of the employer;

(c)confirmation that the employer understands and intends to discharge the obligations contained in regulation 114B; and

(d)the name, address, and employer’s PAYE reference of any associated company which is a current or former holder of a UKCS continental shelf workers certificate.

(4) When the employer makes the first application under this regulation, the employer may also comply with the obligation under regulation 114B(e) by including those details (if known) in the application.

(5) An application made under this regulation may be combined with an application made under an equivalent PAYE provision.

(6) Upon receipt of an application under this regulation, an officer of Revenue and Customs may, if they are satisfied the conditions in paragraph (2) are met, issue a UKCS continental shelf workers certificate.

(7) A UKCS continental shelf workers certificate must include—

(a)the name of the UKCS continental shelf workers certificate holder;

(b)the employer's PAYE reference of the UKCS continental shelf workers certificate holder; and

(c)the date on which the certificate is issued.

(8) A UKCS continental shelf workers certificate may be issued to—

(a)the person authorised to accept service on behalf of the employer;

(b)the employer; or

(c)both the person authorised to accept service on behalf of the employer and the employer.

(9) A certificate may be combined with a certificate issued under an equivalent PAYE provision.

(10) Where an employer ceases to meet the conditions in paragraph (2) or to comply with its obligations under regulation 114B, or an equivalent PAYE provision, an officer of Revenue and Customs may, by notice in writing to the person authorised to accept service on behalf of the employer, cancel the UKCS continental shelf workers certificate from the date specified in the notice of cancellation.

(11) The date specified in paragraph (10) may not be earlier than 10 working days after the date of the notice.

(12) A notice under paragraph (10) may be combined with a notice under an equivalent PAYE provision.

UKCS continental shelf workers certificate holder: obligations and responsibilitiesU.K.

114B.  A UKCS continental shelf workers certificate holder must—

(a)make such deductions, returns and repayments as are required of a secondary contributor;

(b)keep written records of—

(i)the name, date of birth, and national insurance number of the continental shelf workers supplied;

(ii)the name, registered office and oil field licence number of the oil field licensee to whom each of the workers were supplied;

(iii)the offshore installation to which each of the workers were supplied; and

(iv)the dates between which the workers worked on the offshore installation;

(c)keep the records required by sub-paragraph (b) for a period of 6 years from the end of the tax year to which they relate;

(d)where an officer of Revenue and Customs requires them in writing to do so, provide copies of the records required by sub-paragraph (b) to HMRC within 30 days of the date of the request; and

(e)before supplying the oil field licensee with continental shelf workers for the first time, inform HMRC in writing of the details of the oil field licensee including name, business address, and oil field licence number of the oil field licensee.

UKCS oil field licensee certificateU.K.

114C.—(1) Where a UKCS continental shelf workers certificate holder has notified HMRC that the employer intends to supply continental shelf workers to an oil field licensee an officer of Revenue and Customs must issue a UKCS oil field licensee certificate to the oil field licensee.

(2) The UKCS oil field licensee certificate must include—

(a)the name of the oil field licensee;

(b)the registered office of that oil field licensee;

(c)the oil field licence number;

(d)the name of the UKCS continental shelf workers certificate holder;

(e)the date on which it is issued; and

(f)a description of the continental shelf workers to whom it applies.

(3) Where a UKCS oil field licensee certificate is in force the holder of that certificate is not liable to pay any contributions in respect of any continental shelf worker of a description set out in the certificate.

(4) If a UKCS continental shelf workers certificate is cancelled by an officer of Revenue and Customs that officer must also, by notice in writing, cancel the UKCS oil field licensee certificate.

(5) A notice under paragraph (4) must—

(a)be sent on the same day as the notice cancelling the UKCS continental shelf workers certificate;

(b)specify the date of cancellation of the UKCS oil field licensee certificate; and

(c)notify the oil field licensee that it is liable to meet its obligations as a secondary contributor.

(6) The date of cancellation of the UKCS oil field licensee certificate must be the same date as that specified in the UKCS continental shelf workers certificate cancellation notice.

Interpretation of regulations 114 to 114CU.K.

114D.  In regulations 114 to 114C—

“associated company” means any company within the meaning of section 449 of the Corporation Tax Act 2010;

“an equivalent PAYE provision” means any provision in the PAYE Regulations which has an equivalent effect to the provisions in regulations 114A to 114C;

“employer’s PAYE reference” has the meaning given in regulation 2(1) of the PAYE Regulations;

“offshore installation” means—

(a)

a structure which is, is to be, or has been, put to a relevant use while in water;

(b)

but a structure is not an offshore installation if—

(i)

it has permanently ceased to be put to a relevant use,

(ii)

it is not, and is not to be, put to any other relevant use, and

(iii)

since permanently ceasing to be put to a relevant use, it has been put to a use which is not a relevant use;

(c)

a use is a relevant use if it is—

(i)

for the purposes of exploiting mineral resources,

(ii)

for the purposes of exploration with a view to exploiting mineral resources,

(iii)

for the storage of gas in or under the shore or the bed of any waters,

(iv)

for the recovery of gas so stored,

(v)

for the conveyance of things by means of a pipe,

(vi)

mainly for the provision of accommodation for individuals who work on or from a structure which is, is to be, or has been put to any of the above uses while in the water,

(vii)

for the purposes of decommissioning any structure which has been used for or in connection with any of the relevant uses above;

(d)

a structure is put to use while in water if it is put to use while—

(i)

standing in any waters,

(ii)

stationed (by whatever means) in any waters, or

(iii)

standing on the foreshore or other land intermittently covered with water;

(e)

a “structure” includes a ship or other vessel except where it is used wholly or mainly—

(i)

for the transport of supplies;

(ii)

as a safety vessel;

(iii)

for a combination of (i) and (ii); or

(iv)

for the laying of cables; and

“oil field licensee” means the holder of a licence under Part 1 of the Petroleum Act 1998 in respect of the area in which the duties of the continental shelf worker’s employment are performed;

“UKCS continental shelf workers certificate” means a certificate issued under regulation 114A;

“UKCS oil field licensee certificate” means a certificate issued under regulation 114C(1).]