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bigduckontax
bigduckontax, Accountant
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I am a British captain who is resident in uk. I worked on British

Customer Question

I am a British captain who is resident in uk. I worked on British Registered vessel and my employer is based in Singapore. I was sailing worldwide and have had sufficient qualifying days outside the UK to have not paid tax. Here say that I am liable for nics for between 2009 and 2012. Will this be class 1 or class 2. I did not work in the UK in these 4 years except for 14 days.
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Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello John, I am Keith, one of the experts on Just Answer, and happy to be able to help you with your question.
Here is the Gov UK advice on NI contributions:
'UK resident
National Insurance should be deducted from your pay by your employer if you work:
•for or are paid by a company based in the UK
•on a ship registered in the UK or the Isle of Man
•on a ship registered in the UK for an employer based in the European Economic Area (EEA) or in a country that has a Reciprocal Agreement with the UK
•on a ship registered in the UK that is owned in Bermuda or another country that has a Reciprocal Agreement with the UK
•on a ship registered outside the UK, but your employer is based in the UK and your contract was signed in the UK
•on a ship registered in Bermuda and owned in Bermuda, but that calls regularly at UK ports
•in UK inshore waters or between UK ports (with no visits to a foreign port in-between)
•in the designated UK sector of the Continental Shelf on a ship engaged in exploration or exploitation of oil or gas'
So there you have it, you are liable for Class 1 NI, but your employer should have seen to it and deducted it from your emoluments. I suspect what has happened is that as you were entitled to Seafarers' Allowance and no tax deducted it was assumed that NI deductions were similarly treated which is not the case. To unscramble this mess it may be necessary to make voluntary contributions to keep your card stamped to use an old expression. If you have no deductions recorded the NI authorities will write to you after the conclusion of each tax year asking if you wish the participate in these.
I do hope that I have been able to shed some light on your position. I myself served at sea some 45 years ago, but that was in Army vessels so the problems did not arise as we were paid under PAYE.
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Customer: replied 1 year ago.
Answer is okay and what I thought it would be based on my own research. The fact that my wages were paid from Singapore by Singaporean company would have meant no class 1 contributions . They will be letting me know what I owe them next week in any case.
Expert:  bigduckontax replied 1 year ago.
Well it is effectively your contributions which are missing and an UK employer would have deducted them and reduced your take home pay anyway, so effectively you are not out of pocket.
Thank you for your support.

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