PART 9 SPECIAL CLASSES OF EARNERS

Case C— Mariners

Earnings periods for mariners and apportionment of earnings120.

(1)

For the purposes of liability for and calculation of earnings-related contributions, paragraphs (2) to (9) apply where earnings are paid to or for the benefit of a mariner in respect of his employment as such for a voyage period.

(2)

In this regulation “a relevant change” means a change affecting the calculation of earnings-related contributions under the Act not being—

(a)

a change in the amount of the mariner’s earnings; or

(b)

a change in one or more of the following figures applicable in respect of the mariner’s employment—

(i)

F1the main primary percentage or the additional primary percentage for a primary Class 1 contribution specified in section 8(2) of the Act F2 or the percentage rate for a secondary Class 1 contribution specified in section 9(2) of the Act,

F3(ii)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii)

the amount by which the percentage rate of a secondary Class 1 contribution is reduced in accordance with regulation 119(1),

(iv)

the lower or upper earnings limit for primary Class 1 contributions specified in section 5(1) of the Act F4.

(3)

Where a voyage period falls wholly in one year, then—

(a)

if no relevant change occurs during the voyage period, the earnings period shall be the voyage period;

(b)

if one or more than one relevant change occurs during the voyage period the earnings shall be apportioned to such periods as comprise—

(i)

the day on which the voyage period began and the day immediately before which the change occurred, and for any subsequent change, the day on which the immediately preceding change occurred and the day before which the next succeeding change occurred, and

(ii)

so much of the voyage period as remains,

according to the amounts earned in each period, and the earnings period in respect of each amount so apportioned shall be the length of the period to which it is apportioned.

(4)

Where a voyage period falls partly in one or more other years, then if no relevant change occurs during the voyage period—

(a)

the earnings shall be apportioned to those years according to the amounts earned in each year; and

(b)

the earnings period in respect of each amount shall be the length of the period to which that amount is apportioned.

(5)

Where a voyage period falls partly in one and partly in one or more other years and one or more than one relevant change occurs during the voyage period, then—

(a)

in respect of a year during which a relevant change or more than one relevant change occurs the earnings shall be apportioned to such periods as comprise—

(i)

the day on which the voyage period began, or where it began in another year, the beginning of the year in which the change occurred, and the day immediately before which the change occurred, and for any subsequence change, the day on which the immediately preceding change occurred and the day before which the next succeeding change occurred, and

(ii)

so much of the voyage period as remains in the year,

according to the amounts earned in each period, and the earnings period in respect of each amount so apportioned shall be the length of the period to which it is apportioned; and

(b)

in respect of other years, the earnings shall be apportioned to those years according to the amounts earned in each year and the earnings period in respect of each amount so apportioned shall be the length of the period to which it is apportioned.

(6)

Where under paragraphs (3) to (5) an earnings period—

(a)

is less than a week, that period shall for the purposes of those paragraphs be treated as a week;

(b)

exceeds a week or a whole multiple of a week by a part of a week,

(i)

if that part of a week is a period in excess of 3 days, that part of a week shall be treated as a week for the purposes of paragraphs (3) to (5), and

(ii)

if that part of a week is a period of 3 days or less, it shall be disregarded for those purposes.

(7)

For the purposes of paragraphs (3) to (5)—

(a)

where a period of leave on pay immediately follows the day on which the termination of an entire voyage or series of voyages occurs—

(i)

the earnings for that period of leave shall be treated as if they were earned during that period and shall be excluded from the earnings for any other period or periods, and

(ii)

for the purpose of apportionment, the earnings for the period of leave shall be deemed to accrue from day to day by equal daily amounts; and

(b)

“earned” includes treated as earned under this paragraph.

(8)

Where under paragraphs (1) to (7) earnings are apportioned to a period—

(a)

each amount so apportioned shall be treated as paid at the end of the period to which it is apportioned; and

(b)

contributions paid in respect of the amount so apportioned shall be treated as paid in respect of the year in which the end of that period falls.

(9)

Notwithstanding paragraphs (3) to (5) and (8), where a voyage period extends beyond the date on which the earnings are paid, any amount of earnings which, by virtue of paragraphs (1) to (8), would be apportioned to a period in the year following that in which the earnings are paid—

(a)

shall be treated as paid at the end of the year in which the earnings are paid but shall not be aggregated with any other amount of earnings paid or treated as paid at the end of that year; and

(b)

the earnings period in respect of that amount shall be a period of the same length as that to which it is apportioned.