Tax for Share Fishermen

If you work on a fishing boat and receive a share of the catch or profits rather than a fixed wage, you're likely a "share fisherman" in HMRC's eyes. This status comes with special tax and National Insurance rules that differ from both standard employees and other self-employed workers.

Who counts as a share fisherman?

You're classified as a share fisherman if you meet all of these conditions:

• You work as a master or crew member on a British fishing boat with more than one person
• You're not employed under a contract of service (meaning you don't have a formal employment contract)
• You receive all or part of your pay by sharing the profits or gross earnings of the boat

You may also count as a share fisherman if you previously worked on a British fishing boat but now work ashore in England, Scotland or Wales, doing related work such as making and mending gear for British fishing boats.

If you work under a contract of service with fixed wages, you're an employee for tax purposes, not a share fisherman.

Registering as self-employed

Share fishermen are treated as self-employed for tax purposes. You must register for Self Assessment as self-employed by 5 October following the end of the tax year when you first became a share fisherman.

For example, if you became a share fisherman during the 2024/25 tax year, you must register by 5 October 2025.

Completing your Self Assessment tax return

You must complete a Self Assessment tax return each year, declaring all your income from any source. This includes:

• Your share fishing income
• Any employment income
• Jobseeker's Allowance
• Any other taxable income

You can claim business expenses on your tax return to reduce your taxable profit. Keep business records to support the information you include in your return.

Important: Do not record any tax that has been deducted by your settling agent (the person or organisation that handles the sale of your catch) on your tax return.

Special requirements for boat owners

If you own a fishing boat, HMRC will send you a Schedule 23 notice at the start of each tax year. This legal notice tells you what information you must provide, including:

• Details of your crew of share fishermen
• Each crew member's share of the catch in monetary terms

You must complete a fees and commissions statutory notice (form FAC-01) and return it to HMRC by the date specified on the Schedule 23 notice. This is a legal requirement.

The share fishermen in your crew need to include these amounts on the self-employment supplementary page of their own Self Assessment tax returns.

For help with these returns, you can contact HMRC on 03000 561605 or email sharefishermennationaladminteamisbc@hmrc.gov.uk.

National Insurance contributions

When you register as self-employed, you must also register for National Insurance. Share fishermen pay National Insurance at special rates.

Class 2 National Insurance

Share fishermen pay a special rate of Class 2 National Insurance, which counts towards Jobseeker's Allowance as well as the standard benefits such as State Pension.

If your profits are at or above the Small Profits Threshold: You don't need to pay Class 2 contributions, but they're treated as having been paid when you file your tax return. This protects your National Insurance record.

If your profits are below the Small Profits Threshold: You can pay Class 2 contributions voluntarily to protect your entitlement to State Pension, Jobseeker's Allowance and other benefits.

Check the current Small Profits Threshold and the special Class 2 rate for share fishermen on HMRC's rates and allowances page.

Class 4 National Insurance

Depending on your level of profits, you may also need to pay Class 4 National Insurance contributions. Both Class 2 and Class 4 contributions are usually paid through Self Assessment.

Claiming Jobseeker's Allowance

If you claim Jobseeker's Allowance between the first Sunday in January and 31 January, there may be a delay in receiving your payments if you haven't:

• Already filed your tax return, or
• Paid your voluntary Class 2 contributions (if applicable)

If you're paying Class 2 voluntarily and owe HMRC other money, contact them before making the payment, as they normally apply payments to your oldest debts first.

Spreading the cost of your tax bill

You can set up a Budget Payment Plan to make regular weekly or monthly payments towards your next Self Assessment tax bill. This can help you manage your cash flow throughout the year rather than facing a large bill in one go.

Sources

• Share fisher: Income Tax and National Insurance contributions

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.