§ Mr. Skeetasked the Chancellor of the Exchequer assuming a £6,000 and a £12,000 gross income per annum for divers working in the United Kingdom North Sea what is the earning differential after tax between (a) a diver operating on a genuine self-employed basis and (b) a diver paying PAYE.
§ Mr. Robert SheldonThis will depend on the amount which the diver is entitled to claim as a deduction in arriving at his taxable earnings. This will vary, not only by reference to whether he is treated as self-employed or employed but also by reference to his individual circumstances.
522Wren aged 16,14, 12 and 10 years in January of each year since 1970.
§ Mr. Robert SheldonThe figures are as follows:
§ Mr. Skeetasked the Chancellor of the Exchequer what evidence he has of diving companies registering abroad to be outside the jurisdiction of the United Kingdom tax system.
§ Mr. Robert SheldonI have no such evidence. In any event, the fact that a company is registered abroad does not, by itself, place that company outside the jurisdiction of the United Kingdom tax system.
§ Mr. Skeetasked the Chancellor of the Exchequer whether there is an established definition of self-employed and employed divers for tax purposes; and if he will make a statement.
523W
§ Mr. Robert SheldonThe question whether a person should be treated as self-employed or an employee for tax purposes depends on the precise terms and conditions under which he works. There is no established definition of employment or self-employment for this purpose; decisions in the courts have made clear that a number of factors are relevant.
§ Mr. Skeetasked the Chancellor of the Exchequer whether he has any information about divers being employed by company's subsidiaries abroad; and to what extent, if any, this has led to a diminution of work for locally based firms.
§ Mr. Robert SheldonI am not clear what information the hon. Member has in mind. I am aware that majority of companies employing divers in the North Sea are and always have been based outside the United Kingdom.
§ Mr. Skeetasked the Chancellor of the Exchequer for how many days per annum foreign divers are permitted to work in United Kingdom waters without becoming liable to United Kingdom tax.
§ Mr. Robert SheldonAll individuals working in the United Kingdom—including the territorial sea of the United Kingdom and the United Kingdom sector of the Continental Shelf—for whatever length of time are liable to United Kingdom income tax on their earnings unless those earnings are exempt from tax under the terms of a double taxation agreement.
§ Mr. Skeetasked the Chancellor of the Exchequer whether the disincentive provided by the United Kingdom tax system are resulting in the replacement of locally employed divers by those operating from abroad.
§ Mr. Robert SheldonI am not aware of any clear evidence that the operation of PAYE by companies employing divers in the United Kingdom sector of the North Sea has resulted in the replacement of locally employed divers by divers operating from abroad.