HC Deb 11 July 1978 vol 953 c517W
Mr. Skeet

asked the Chancellor of the Exchequer whether North Sea divers, registered as self-employed for tax purposes, are regarded as self-employed persons for the purposes of the national insurance Acts, and accordingly for the payment of contributions.

Mr. Orme

I have been asked to reply.

The provision in the Finance Bill under which divers employed in the United Kingdom or a designated area of the Continental Shelf are to be taxed under case 1 of schedule D—that is, as if they were self-employed—does not affect the general position that for national insurance purposes they are employed earners and therefore liable for class 1 contributions. These contributions provide cover for the full range of national insurance benefits, including industrial injuries benefits which are of particular value to people engaged in a hazardous occupation. As divers are to be taxed under schedule D, my right hon. Friend proposes in due course to make regulations to secure that they are not, in consequence, liable for class 4 contributions in respect of earnings on which they have paid class 1 contributions.

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