§ Mr. Adam Hunterasked the Chancellor of the Exchequer whether he will treat divers in the North Sea as self-employed for tax purposes; and if he will make a statement.
§ Mr. Robert SheldonI have given further careful consideration to this matter in the light of representations received. As I have made clear on several occasions, these divers fall to be treated as employees under the existing law. Nevertheless, after a careful examination of their particular circumstances, I recognise that there are certain distinctive features about their work, such as the danger which it entails, their vulnerability to long-term health hazards, the exceptional travelling difficulties involved and the shortness of their working life. Taking into account these and other factors, my right hon. Friend is now prepared to introduce legislation in the coming Finance Bill which will provide that earnings from diving operations in connection with exploration or exploitation activities in the United Kingdom Continental Shelf will, with effect from 1978–79, be assessable under Schedule D rather than Schedule E.