Managing Agents

Consideration needs to be given to the employer’s social security liabilities you will have assumed in becoming the managing agent.

In particular, these liabilities will become relevant where you are paying the crew salaries. You will need to take into account the jurisdiction in which you are based, the flag state of the yacht and the nationality and residence status of the crew as well as the jurisdiction in which the owner is based.

If you are in a European Economic Area jurisdiction, the Isle of Man, the United States or any other jurisdiction that has social security laws, then there is specific legislation that will determine if you have an employer’s liability. If you do have a liability you will be responsible for deducting and paying the social contribution to the relevant authority.

Failure to establish whether or not there is an employer’s liability may impede the smooth operation of the yacht and your effectiveness as a managing agent in the yacht industry.

All of the following have to be considered by yacht owners and their representatives:

• The nationality/domicile and residence of the crew
• The flag state of the yacht
• The jurisdiction from where salaries are paid
• The structure from where the salaries are paid
• The residence of the yacht owner or owning structure
• The residence of the yacht owner’s representative or managing agent
• The permanent berth of the yacht