Hi all,
My client is a North Sea Deep Sea Diver working off oil rigs.
He works for two companies and receives payslips.
Class 1 n.i is deducted from his pay but no tax is deducted.
Being a deep sea diver his earnings are assessable as trading income and not as employment income but he is exempt from class 4 n.i.
My query is whether he is also deemed self employed for vat purposes and should register for VAT now his earnings are well above the threshold limit?!
Thoughts much appreciated,
cheers
simpsonite
He is exempt for VAT, as the income although subject to a charge under ITTOIA s15 is in fact employment income.
However he is only exempt to the extent that this particular diving income under ITTOIA s15 is not subject to VAT. But if he working in any other diving capacity as a self employed jobbing diver such as under the CIS, then VAT would be liable on that turnover where that exceeds the threshold.
