THIS IS SIMPLY DUE TO THE NUMBER OF PEOPLE IN ATTENDANCE PM BIO MARINE ACCOUNTS SPECIALISES IN PROVIDING CREW WITH TAX amp MORTGAGE ADVICE DIRECTOR PATRICK MAFLIN PM BIO PETER BROOKE SPECTRUM IFA amp HORIZONS ID: 701453
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INTRODUCTION
PLEASE WRITE DOWN ANY QUESTIONS YOU MAY HAVE AND WE WILL BE HAPPY TO ANSWER THEM AT THE END.
THIS IS SIMPLY DUE TO THE NUMBER OF PEOPLE IN ATTENDANCE.
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BIO
MARINE ACCOUNTS: SPECIALISES IN PROVIDING CREW WITH TAX & MORTGAGE ADVICE
DIRECTOR: PATRICK MAFLIN
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BIO
PETER BROOKE: SPECTRUM IFA & HORIZONS
Peter Brooke is a French based Financial Adviser with the Spectrum IFA Group who
have created
Horizons as a complete financial solution for yacht crew.
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BIO
MLC 2006 SPECIALIST: ROD HATCH
Background:
3
½ years
lecturing in
Economics
and
Liberal
S
tudies
at
London’s
South Bank Polytechnic.
Switched to professional yachting, sail and power, since 1969, with 6 years
in
commercial shipping
.
ILO CERTIFIED MLC TRAINER
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FOCUS OF THE TALK
THE IMPACT THE RATIFICATION OF MLC 2006 WILL HAVE ON CREW.
THE IMPACT IT WILL HAVE ON YOUR EMPLOYER WILL BE DISCUSSED IN THE NEXT TALK IN MAY.
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MLC 2006
‘GRANTED RIGHTS TO SEAFARERS, BUT WITH THESE CAME RESPONSIBILITIES’
Responsibilities as crew and how you can manage these recent changes.
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MLC 2006
Title 4. Health protection, medical care, welfare and social security protection
Regulation 4.1 – Medical care on board ship and ashore
Regulation 4.2 –
Shipowners’
liability
Regulation 4.3 – Health and safety protection and accident
prevention
Regulation 4.4 – Access to shore-based welfare facilities
Regulation 4.5 – Social security
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BACKGROUND: THE DECREE
France
has now brought its social security laws in line with the mandatory requirements of
MLC.
France
will meet
all of the obligations under the convention, so be prepared for further revisions/additions in the future
The entry into force
is 1st
July
2017 which
allows just enough time for Yacht Owners and crew alike to
get their house in order
.
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Why has France introduced MLC?
France was the first to ratify the convention.
It is believed that the Unions brought this about, trying to achieve better rights for workers on ferries in North of France.
French social security is suffering from a short fall which is another key motivator.
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FRANCE FIRST..
MORE COUNTRIES WILL RATIFY THE TREATY.
IF THEY DO NOT POTENTIAL LEGAL ACTION COULD BE TAKEN BY THE ILO.
82 COUNTRIES HAVE SIGNED UP TO THE TREATY (91% GROSS TONNAGE)
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1
ST
JULY
FRENCH RESIDENTS MUST REGISTER WITH ENIM
– EMPLOYEE(S) AND/OR EMPLOYER (YACHT).
OWNER HAS TO PUT A BOND DOWN FOR 12 MONTHS OF PAYMENTS
IF IGNORED PENALTIES OF 0.05% PER DAY OF SALARY WILL BE LEVIED
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TWO ROUTES TO RESIDENCY
ROUTE 1: OECD MODEL
- INDIVIDUALS
ROUTE 2: SUBSTANTIAL TIME - YACHT
MAY BACK DATE. EFFECTIVE DATE 1
ST
JANUARY 2017
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ROUTE 1 - INDIVIDUAL
ROUTE 1: OECD MODEL (CERTAIN)
ROUTE 2: SUBSTANTIAL TIME (ATTACHED FISCAL RESIDENCE REQUIREMENTS- MORE THAN 181 DAYS)
UNCONFIRMED IF THEY WILL BACK DATE. HOWEVER EFFECTIVE DATE WAS 1
ST
JANUARY
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ROUTE 2 - YACHT
SUBSTANTIAL TIME
EG 181 DAYS IN FRENCH WATERS
YOU KNOW!! TALK ABOUT IT IF YOU ARE WORRIED
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PRIVATE OR COMMERCIAL?
AS RATIFIED AS PART OF MLC – DOES THE DECREE APPLY TO PRIVATE YACHTS?
U
nless
ENIM states that a certain group or type of seafarer and employer are exempted the Decree will apply to all seafarers
.
Social
security in virtually all countries is determined by the “master/servant” relationship.
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PRIVATE OR COMMERCIAL?
There is no precedence in French or EU law to exempt seafarers on private yachts from being regarded as employed and therefore pay social security contributions.
I
f
such an exemption were to be given by ENIM
, the
case would almost certainly be challenged at the
EU
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CONTRACTS
The
(Seafarer)
agrees to be responsible for the payment of any applicable taxation, personal pension and other mandatory liabilities as may be due and agrees to indemnify the Employment Company and to keep the Employment Company indemnified on a continuing basis if the Employment Company is called upon to account to a relevant authority for such payments or for any interest and/or penalties arising in respect of such payments. To the extent such a liability arises for the Employment Company, it retains the right to set off amounts owed under this indemnity from outstanding pay owed by the Employment Company to the
(Seafarer)
.
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CONTRACTS
No pension attaches to the
Captain’s
employment and the Employment Company shall not be liable to contribute to any pension, bonus or retirement scheme, whether statutory or otherwise, in respect of his employment as
(Seafarer)
.
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SOCIAL SECURITY COSTS
EUROPEAN COUNCIL OF PROFESSIONAL YACHTING ARE STILL ARGUING WITH UNIONS
&
ITF (INTERNATIONAL TRANSPORT INDUSTRY)
EMPLOYERS CONTRIBUTION WILL BE 30 – 40%
EMPLOYEES AROUND 10% - 20%
MAXIMUM 47% TOTAL COST
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IMPLEMENTATION
PORT STATE CONTROL
DOUANES
CAPITAINERIE
SHIP LOG BOOK
ENIM HAVE IMPLEMENTATION TEAM
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Solutions
You have until 1
st
July
If you are not making social security contributions in another country you will be required to do so to ENIM in France
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EEA STATES & BILATERAL
EU
/EEA/Switzerland and countries with which France has a bi-lateral social security agreement.
Australia
and New Zealand do not have a bi-lateral agreement with France.
D
ual nationals may have
the right to make social security
contributions
in EU/EEA
Marshall Islands are already disputing this.
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UK Citizens
HMRC’s
Mariners questionnaire is used to determine whether you should be paying class 1, or if you are
can to
pay class
2
Work
for or are paid by a company based in the
UK?
Work
on a vessel registered in the UK or the Isle of Man for an employer based in the European Economic Area (EEA) or in a country that has a reciprocal agreement with the
UK
?
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UK Citizens
If you are not liable to pay class 1 NI, then there are 2 possible classes that you may be eligible to pay:
Class
2,Under Mariners contributions, which is £2.80 per
week
Class
3, at the higher rate of £14.10 per week.
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New Zealand
KiwiSaver
takes minimum 3% of gross income from employees, with employers contributing the same amount on top.
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Australia
A
non-resident may contribute to a Superannuation Fund at 15% income as long as they have a Tax File Number (TFN). Without a quoted TFN they will be taxed at 49%.
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US
The current percentages for Social Security are 6.2% paid by both the employer and the employee;
Medicare
tax, is paid at a rate of 1.45% by both the employer and the employee
;
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ITS NOT ALL BAD
MLC was created as a Bill of Rights for Seafarers
France has the best healthcare system in the world (W.H.O)
Going into Hospital costs on average €1600 per night
Ensure
that you do have adequate medical, health care & pension provision, very few do.
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QUESTIONS
THIS IS NOW YOUR OPPORTUNITY TO ASK US ANY QUESTIONS YOU MAY HAVE.