More about the special rules for EEA nationals

If you are:

• a national of an European Economic Area (EEA) country
• or are legally resident in the EU
• and work on a UK flagged vessel

you will pay Class 1 National Insurance contributions and be eligible for certain Social Security benefits in the UK in the same way as a mariner who is resident or domiciled in the UK.

If you have a valid form A1 or E101 from another Member State exempting you from UK contributions, then you do not pay in the UK.

From 1 May 2010 mariners are to be insured in the State where their vessel is flagged under European Community Regulations 883/2004 which operate in the EU.

Unless:

Where the mariner is remunerated by an undertaking in the Member State where he resides, the legislation of the Member State of residence applies. Under these rules, the person paying the remuneration is to be treated as the employer under the legislation that applies.

Example of the exception

Steve is resident in the UK. He works on a Dutch flagged vessel. Steve is paid his remuneration by an agent of the shipping company. The agent is in the UK. Steve is subject to UK Class 1 National Insurance and the agent is treated as his employer for National Insurance purposes.

A person who comes within the exception must obtain form A1 or E101 from the country of residence.

Old rules

Before 1 May 2010 the basic rule was that mariners were insured in the 'flag state' under European Community Regulations 1408/71. However, the exceptions to this basic 'flag state' rule were slightly different:

• The mariner had been posted to that vessel by an employer either in another EEA State or from a vessel flying the flag of another State. In which case they had to apply to remain subject to the legislation of the first State.
• A mariner was normally self-employed on a ship flying the flag of another EEA country and only temporarily worked on a UK vessel. In which case they had to apply to remain subject to the legislation of the first State.
• The vessel was in a port, or within territorial waters, of another EEA country and the mariner was not normally employed at sea or a crew member. In this case they were subject to the legislation of that country.
• The mariner was resident in another EEA country and paid by an employer or other person whose registered office or place of business was also in that country, in which case they were subject to the contribution legislation of that country.

If the application of the new rules from 1 May 2010 would change which Member State's legislation applies, you should contact HM Revenue & Customs for advice.