UK Maritime Union Launches Protest Against New Tax Changes

by Robin Pilgrim, LawAndTax-News.com, London

30 September 2008

Nautilus, one of the UK's largest maritime unions, has this week hit out at new proposals from HM Revenue and Customs (HMRC) which will see thousands of offshore workers subject to a new, tax regime.

In the late 1990s, the government implemented a series of concessions on seafarers' income tax in order to sustain a high number of sailors in the UK.

However, once the proposals from HMRC are introduced, a large proportion of sea workers will no longer qualify for these concessions as a number of the vessels involved in offshore work will no longer be classified as ships.

Those affected will largely come from areas such as dive support and remotely operated vehicle (ROV) industries, the majority of which are based in Scotland.

Upon hearing the news, Nautilus drafted a letter to UK Chancellor Alistair Darling and shipping minister Jim Fitzpatrick alerting them to the potentially disastrous effect the new legislation could have for the shipping industry, with Peter McEwen, deputy general secretary of the union also calling for an urgent meeting with Treasury officials.

Despite the bad news for dive support and ROV workers, HMRC has tried to soften the blow by announcing that pipe laying barges will continue to be considered as ships if they are involved solely in laying pipes, whereas the status of other vessels will be deliberated on an individual basis.

Aberdeen South MP Anne Begg is also currently seeking a meeting with the Chancellor in light of the news, citing her shock at HMRC's decision.

HMRC has said that it is still reviewing some areas of the legislation in order to ensure it is applied correctly.

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