NIM01560 - Class 1 Structural Overview: zero-rate of secondary NICs for Freeport and Investment Zone special tax site employees: mariners

Part 2 of The National Insurance Contributions Act 2022 (Application of Part 1) Regulations 2022

Part 2 of these regulations apply to mariners in respect of whose earnings secondary Class 1 contributions are payable at the secondary percentage as modified by regulation 119 of the SSCR 2001. 

Regulation 119 of SSCR 2001 provides employers of certain mariners and deep-sea fishermen with a 0.5 percentage point reduction in the rate of secondary NICs.

Where an employee who is employed by a qualifying employer for the zero-rate of secondary NICs for Freeport and Investment Zone employers is a mariner to which regulation 119 SSCR 2001 applies then regulation 2 of Part 2 of The National Insurance Contributions Act 2022 (Application of Part 1) Regulations 2022 disapplies the Freeport or Investment Zone relief until the tax year has ended.

As this has a very limited application HMRC has not provided a category letter and a qualifying employer will therefore have to write to HMRC to claim their Freeport or Investment Zone relief after the end of the tax year. Guidance about claiming a refund can be found in the CWG2.