A diver was treated as self-employed for periods of his employment in which he worked on the UK continental shelf and was entitled to the seafarer’s earnings deduction for other periods in which he did not.     

The appellant was engaged to work for a company as a ‘mixed gas diver’. His contract required the company to provide 150 days employment each year and for the appellant to work ‘as and when required’. He was paid a monthly salary with holidays and other benefits. 

The appellant served on board several ‘ships’. Each had a dynamic positioning system, which enabled them to stay above one point on the seabed without anchoring. Each had cranes and other features to enable and assist with seabed operations. The ships undertook dive campaigns; an ‘average’ job for the appellant lasted 20 days. 

HM Revenue and Customs (HMRC) issued an enquiry closure notice in relation to