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Taxation of divers and diving supervisors

E5.701 Basis of charge

Special rules apply to an employee who works in the UK, or in a designated sector of the continental shelf, where that individual's duties consist wholly or mainly of:

1. Ìý

   (a)ÌýÌýÌýÌý taking part, as a diver, in diving operations connected with the exploration of the seabed, its subsoil and their natural resources; or

2. Ìý

   (b)ÌýÌýÌýÌý acting as diving supervisor in relation to such operations¹

A designated sector is an area designated under the Continental Shelf Act 1964, s 1(7)², which includes the UK sector in the North Sea.

The effect of the rules is that despite the contractual arrangements, in the performance of these employment duties, the individual is not treated for tax purposes as an employee. Instead, the individual is treated as a self-employed person carrying on a trade and is assessed accordingly. Thus, any employment income that is attributable to diving and diving supervision duties on operations