HM Revenue and Customs
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UK fishermen offered help by taxman
Share fishermen across the UK are being encouraged to join a scheme tailor-made to help ensure they won't be caught short when their tax is due.
Share fishermen, who are classified self-employed, receive a share of the profits or gross earnings of a fishing boat.
But research from HM Revenue & Customs (HMRC) has revealed that share fishermen often don't save for tax and national insurance, and this can cause difficulty when the tax bill finally arrives.
The Share Fisherman Scheme, set up by HMRC, helps its members set aside 20 per cent of money earned aside each month from every catch, helping them to pay tax and national insurance on time and automatically at the end of the tax year.
Ron McGruther, HM Revenue & Customs, share fishermen tax manager, said:
"We don't want to have to issue share fishermen with penalties for late and incorrect tax returns. This is why we have set up this tailor-made scheme.
"Besides this, the scheme will make it easier for share fishermen to access other benefits, including: tax credits, if they are on a low income; and other financial services, such as, loans and mortgages."
An information pack is available from HMRC about how to join the scheme. Call 0845 0789 789, or 01779 483 314.
Notes for editors
1. Share fishermen are considered self-employed and are traditionally paid by cheque and/or cash for every catch without any deductions.
2. What share fishermen need to do to sign up for the scheme:
* sign a form called a mandate;
* this mandate allows a bank account to be opened in their name;
* it allows the boat owner to pay a slice of share fishermen's earnings into their bank accounts, each month; and
* in addition, they need to sign a direct debit, which allows HMRC to take the money out of their bank account.
3. As part of the scheme, share fishermen can also get tax relief on seakit expenses, currently set at £700 a year. The expenses, for fishing wear and gear, cover protective clothing, oil-skins, boots, gloves, stones and bedding. Fishermen can only claim the £700 if they have paid for the seakit themselves.
4. Share fishermen must ensure that if you they are on earnings above £18,000 that they are paying the right percentage of tax, which may be higher than 20 per cent.
Issued by HM Revenue & Customs Press Office
Website http://www.hmrc.gov.uk
