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HMRC internal manual

National Insurance Manual

Special cases: Class 1 - mariners: DL Earnings Periods - irregular

Regulation 120 SSCR 2001

Where a mariner receives a general settlement of his earnings at the end of a voyage the earnings period is determined by the voyage period. If the mariner is paid a lump sum at the end of a voyage, or series of voyages, the earnings period (EP) depends on whether:

  • the voyage(s) began or ended in the same tax year ; and
  • during the voyage(s) there has been a relevant change, or changes, in the mariner’s circumstances that involved a new category letter, ie they became
  • contracted-out ; or
  • reached state pension age.

calculate the NICs payable on these earnings according to the number of weeks the voyage lasted.

If the voyage lasts :

  • less than a week, treat it as a week; or
  • longer than a week, or a number of complete weeks, by more than three days treat those days as an additional week. Ignore periods of three days or less.