Guidance

Share fisherman: Income Tax and National Insurance contributions

How Income Tax and National Insurance contributions rules work if you’re a share fisherman.

From:
HM Revenue & Customs
Published
25 September 2014
Last updated
8 February 2024 — See all updates

You’re a share fisherman if you work in the fishing industry and you:

  • are not employed under a contract of service
  • are a master or a crew member of a British fishing boat manned by more than one person
  • get all or part of your pay by sharing the profits or gross earnings of the fishing boat

You also count as a share fisherman if you used to work on a British fishing boat, but now work ashore in Great Britain (England, Scotland and Wales). This could be making and mending gear, or any other work for a British fishing boat.

Fishermen employed under a contract of service are not share fishermen.

Register as self-employed

A share fisherman is classed as self-employed. You must register for Self Assessment as self-employed by the 5 October after you’ve started fishing.

Fill in a Self Assessment tax return

You must fill in a Self Assessment tax return each year so you can declare all your income from any source, for example:

  • self-employment
  • employment
  • Jobseeker’s Allowance

You can also claim for any business expenses on your tax return.

You must keep business records to support information you put in your tax return.

Do not record any tax that has been deducted by your settling agent on your tax return.

Complete a 46G Share Fishermen return if you are a boat owner

Once you’re registered as self-employed and registered with the Maritime Coastguard Agency, HMRC will send you a S23 letter and form 46G.

The S23 tells you about the details you need to send to us. This will include details of your crew of share fisherman and their share of the catch, in monetary terms.

You must include these details on form 46G. We’ll send you a S23 letter in April each year.

HMRC are reviewing the S23 process for boat owners. We have not yet sent out S23 letters for the 2022 to 2023 tax year.

We’ll issue a S23 letter to boat owners in April 2024. This letter will request information for tax years 2022 to 2023 and 2023 to 2024.

Once you’ve completed form 46G, send it by email to: sharefishermennationaladminteamisbc@hmrc.gov.uk.

The share fisherman in your crew need to include the details of these amounts on the self-employment supplementary page of their Self Assessment tax return.

For more information, you can contact us by:

Paying Class 2 and Class 4 National Insurance contributions

When you register as self-employed, you are also registering to pay Class 2 National Insurance contributions. Depending on your profits you may also need to pay Class 4 National Insurance contributions.

As a share fisherman, you pay a special rate of Class 2 National Insurance contributions. This counts towards Jobseeker’s Allowance, as well as the normal benefits Class 2 National Insurance contributions count towards.

You will usually pay Class 2 and Class 4 National Insurance contributions through Self Assessment.

You must pay Class 2 National Insurance contributions if your profits are above the Lower Profits Threshold.

If your profits are below the Small Profits Threshold, you can pay Class 2 National Insurance contributions voluntarily to qualify for Jobseeker’s Allowance and the normal benefits Class 2 National Insurance contributions count towards.

If your profits are between the Small Profits Threshold and the Lower Profits Threshold you will not need to pay Class 2 National Insurance contributions. Your contributions are treated as having been paid to protect your entitlement to State Pension and certain benefits.

You can check the Small Profits Threshold, Lower Profits Threshold and the special rate of Class 2 National Insurance contributions for share fishermen, for current and previous years.

Claiming Jobseeker’s Allowance

If your Jobseeker’s Allowance claim date is between the first Sunday in January and 31 January, you will need to pay all the Class 2 National Insurance contributions. You will need to do this in your Self Assessment tax return as soon as you can, if you have not done so already.

You must pay HMRC these National Insurance contributions by 31 January. If you do not, there might be a delay in getting your Jobseeker’s Allowance.

If you can only pay your Class 2 National Insurance and owe HMRC any other money, contact us first before making the payment. We will normally apply payments to your oldest debts first.

Making it easier for you to pay your next tax bill

You can set up a Budget Payment Plan if you want to make regular monthly or weekly payments towards your next Self Assessment tax bill.

Published 25 September 2014
Last updated 8 February 2024 + show all updates

  1. The register as self-employed section has been updated to advise you need to register by 5 October.

  2. Information has been added about S23 letters in the 'Fill in a Self Assessment tax return' section.

  3. Information has been added about Class 2 National Insurance contributions if your profits are between the Small Profits Threshold and the Lower Profits Threshold.

  4. A new section on 'Making it easier for you to pay your next tax bill' including details on Budget Payment Plans, and more information to help you complete a 46G Share Fishermen return if you're a boat owner have been added.

  5. The Class 2 National Insurance rates have been updated for 2022 to 2023.

  6. Rates have been updated for tax year 2021 to 2022.

  7. We have added guidance on how to send share fishermen returns for 2019/20.

  8. Rates, allowances and duties have been updated for tax year 2020 to 2021.

  9. Rates have been updated for the tax year 2017 to 2018.

  10. Rates, allowances and duties have been updated for the tax year 2016 to 2017.

  11. First published.

Contents

Part of Set up as self-employed (a 'sole trader'): step by step

  1. Step 1 Check if being self-employed is right for you

    1. Check what being self-employed means

    There are other ways to work for yourself. Check if you should set up as one of the following instead:

    1. Get help deciding how to set up your business
    2. Get help starting your own business if you're on benefits

  2. Step 2 Choose the name you want to trade under

    1. Check the rules for sole trader business names

  3. Step 3 Check what records you'll need to keep

    1. Find out what business records you need to keep

  4. Step 4 Register for tax

    To pay tax, you'll need to register for Self Assessment.

    1. Apply for a National Insurance number if you do not have one
    2. Register for Self Assessment

    You might need to register in a different way if:

    You may also need to register for VAT.

    1. Check if you need to register for VAT