In a recent notice published by HMRC – Notice 8: sailing your pleasure craft to and from the UK boat owners are being told to carry ‘documentary evidence supporting VAT status . . . at all times’. This is because, post-Brexit, owners ‘may be asked by customs officials to provide evidence of [a] vessel’s UK VAT status’.

The evidence suggested by HMRC includes an original invoice or receipt, to show that VAT was paid on purchase. If an owner built the boat themselves, they’ll need to have invoices for materials used in the construction to hand.

But, as one boat owner expressed to MIN: “Who has that? I have no idea where I’d find that.”

HMRC is keen to point out that a registration document on its own does not prove the UK VAT status of the vessel, as there is no link in the UK between the registry of the vessel and the payment of VAT.

The HMRC notice continues with advice for buying boats post-Brexit.

‘When buying a used pleasure craft from any VAT registered business in the UK, you should make sure that the invoice shows separately any VAT that the business has charged to you on the supply of the pleasure craft,’ says HMRC. ‘If you are buying from a business that does not charge VAT on the transaction or from a private individual in the UK and the seller states that UK VAT has previously been paid on the vessel, you should obtain evidence from the seller that VAT has previously been accounted for.’

The notice also covers customs requirements for leisure owners who sail their crafts to or from the UK.

It answers questions about flying the ‘Q’ flag, notifying National Yachtline and about which goods need to be declared including prohibited and restricted ‘foodstuffs’.

More information can be found in the notice or by contacting HMRC by email.

Acknowledgement to Marine Industry News

For more information contact European Marine Services Ltd. 

     Marine Surveyors & Consultants | ADR Mediation  |  Expert Witness 
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Tel: (44) 01603 327 123

British Marine has released an online Manufacturer Identity Code (MIC) application and search system in preparation for the end of the Brexit transition period.

After 1 January 2021, all global boat builders, including EU-based manufacturers, will have to register their MIC on the UK register to place a vessel on the GB market.

As a requirement of the Recreational Craft Directive (RCD), a MIC code forms part of a unique serial number that every CE-marked boat must have and enables manufacturers and regulators to identify each particular vessel. It also helps others to identify the country of origin, the builder and year of build of the boat. On behalf of the leisure marine industry in the UK, British Marine is appointed by the government to administer the MIC code national register.

The online system will allow all global boatbuilders to continue to register their codes and is publicly accessible, assisting boat brokers, surveyors and second-hand boat buyers to confirm a vessel’s details.

Acknowledgement to Marine Industry News

For more information contact European Marine Services Ltd. 

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Tel: (44) 01603 327 123

Marine transport and logistics provider, Peters & May, is reminding UK boat owners with vessels outside the UK that, as the Brexit transition period comes to an end, the rules determining boats’ VAT status will be subject to change.

The latest information available from HMRC is that, from 1st January 2021, the rule that yachts must return to the UK within three years of having last left the UK/EU in order to be entitled to Returned Goods Relief (RGR) on duty and VAT will be strictly enforced.

“Whether RGR is applicable will be dependent on it not having undergone any repairs whilst outside the EU that increased its value when it last left the UK/EU and the amount of time it has been overseas, the date of its reimport into the UK and whether the place from where is it returning is inside the Customs Territory of the EU,” says Adam Towgood, sea freight and customs manager. “In order to claim the VAT relief element of RGR, it must also have not changed ownership since it last departed. Where a boat does not meet RGR criteria, duty and VAT will be payable to HMRC upon reimport.”

HMRC has recently announced the grant of a 12-month extension exclusively for boats that are currently within the EU, having departed the UK before 31st December 2017. These now have until 31st December 2021 to be reimported to the UK and claim RGR.

“To ensure that there is no VAT payable to HMRC on the reimportation of their boats we are urging UK boat owners to take early action. Owners need to be aware of the dates of their boats’ movements and time away from the UK and act accordingly to claim Returned Goods Relief,” says Towgood.

Peters & May says it has availability on sailing schedules from the Med which will arrive in the UK before the end of December 2020. The company says an integral part of its yacht transportation service is the completion of complicated paperwork on behalf of the owner.

Acknowledgement to Marine Industry News

For more information contact European Marine Services Ltd. 

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Good morning Will,

Thank you for the report. As new boat owners we have read through this and most makes some sense to us but as requested we have passed it over to the sales manager at NYA to look at too. We will definitely ring you if we need any clarification etc, thank you for the offer.

We will send a cheque to you in today’s post.

Thanks again for your service, definitely worth using.

Regards

J H 

For more information contact European Marine Services Ltd. 

     Marine Surveyors & Consultants | ADR Mediation  |  Expert Witness 
www.europeanmarinesurveys.com
Tel: (44) 01603 327 123

Sadly, we need to report the ‘Administration’ of one of Norfolk’s oldest and most respected boat builders Windboats Marine, being founded in 1920 in Wroxham.

Extract from Letter dated 1 May 2020 …

Statement by Administrators – ENSORS, Chartered Accountants, Cambridge

Windboats Marine Limited – In Administration (the Company)

” I am writing to advise you that along with my colleague David Scrivener, I was appointed Joint Administrator of the Company on 27 April 2020 and enclosed with this letter is formal notice of our appointment.
Please note that we are licensed to act as an Insolvency Practitioners by The Institute of Chartered Accountants in England & Wales and as such am bound by the Insolvency Code of Ethics when carrying out all professional work relating to an insolvency appointment.

The current position
The Company has currently ceased trading due to the restrictions of the Covid-19 Pandemic and lockdown but trading may commence in due course and in that event please note the requirements below in relation to existing and future orders.

Goods or services supplied to the Company after the date of my appointment must only be against orders which are signed by me or one of my authorised representatives, specimens of whose signatures appear below. Goods or services delivered against these orders will be paid for on normal trade terms unless otherwise agreed.

I am not necessarily adopting contracts entered into by the Company prior to my appointment and you must obtain my agreement that undelivered goods or services ordered before my appointment are still required before you deliver them. If they are required, then you should obtain a formal confirmation signed by the approved signatories specified above.

It should be noted that services provided and goods sold and delivered by the Company after my appointment must be paid for in full and no right of set off exists against any sums due to you by this Company prior to my appointment.”

For more information contact European Marine Services Ltd. 

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DEFRA has finally clarified some of the concerns about whether recreational boating was classed as permissible in England.

In an update to its website this morning, the Government department says:
“ All forms of water sports practiced on open waterways, including sailing, windsurfing, canoeing, rowing, kayaking, surfing, paddle-boarding and the use of privately-owned motorised craft (in line with the guidance issued by the relevant navigation authority) are allowed.”

The RYA is leading the charge in getting boaters back onto the water, also pushing for sailing clubs to reopen, citing Sports England‘s website’s statement that

“ Any facilities associated with outdoor sports and physical activities are permitted to re-open, including basketball and tennis courts, playing spaces like golf courses (public and private) and playing fields and water sports.”

Sarah Treseder, RYA Chief Executive, says: “ We welcome the Government’s guidance that general day trip leisure activities are being encouraged and we will continue to work with the RNLI to ensure this is done safely.  “We know that many people will choose to participate in water-based activities such as sailing, motor boating, kayaking and angling from now onwards – especially given the longevity of the lockdown restrictions to date and the favourable weather conditions we’ve been enjoying. In line with Government guidelines for public spaces, the boating community may now drive to their destination so long as they observe social distancing.”

However, Richard Ballantyne, Chief Executive of British Ports Association, is advising caution.

“ We’re all keen and excited to get into the leisure season,” he says. “But we have to urge caution and temper expectations. There is still a question about landside interfaces – like slipways and marinas. These have been closed by various bodies and we’re waiting clarification which should come under policy set by the Departure for Culture, Media and Sport. What we really need is a bit of clarity today.

“ There’s been lots of workplace guidance which covers warehousing and shops, but there isn’t any specific mention of marine facilities in there.

“ Even if we had everything through this morning, some of the ports would potentially need some time to carry out risk assessments and analyse and modify facilities. And although ports have been looking at this since Monday, that may be too short a time to get ready. A lot of smaller ports have furloughed staff and they’ll need time to get them back. They may need training on new ways of working. ”

Cowes Harbour Commission (CHC) issued a statement pointing out that the Government has not yet issued any specific guidance on leisure marine activities and a number of important issues surrounding the potential reopening of marinas, slipways, pontoons, etc., and access to leisure vessels still requires urgent clarification.

“ Although it is expected that specific Government advice will confirm that certain sailing activities and water sports will be able to start shortly,” the statement reads [this has now been confirmed], “marine leisure facilities around the country will need to be assessed and prepared to accommodate social distancing and hygiene measures.”

The British Ports Association (BPA) and UK Harbour Master’s Association (UKHMA) have been in daily contact with relevant Government departments and are assured that further guidance is expected to be released shortly. The more general Transport Sector guidance released yesterday makes it clear that organisations are expected to consider it in full and translate its principles and examples into specific actions.

To comply with their legal Health and Safety obligations, organisations also need to ensure that risk assessments (which take account of relevant guidance) have been carried out and suitable policies and procedures put in place. To do this properly and safely takes time, to ensure safety for users, staff and also the public. This also means that there are likely to be certain measures that need to be followed that could alter what leisure users can do.

“ The BPA and UKHMA have therefore suggested that Cowes Harbour Commission considers waiting for the more specific guidance to be issued before easing current restrictions,”   the CHC statement says. 

“ The intervening period can be used to consider the newly released Transport Sector guidance and to prepare the relevant policies and procedures. These can then be adapted following the release of the more specific guidance

“ For the safety of everyone, recreational marine leisure users are asked to remain patient and understanding as the BPA and UKHMA continue to cooperate and work closely with Government.”

Martin Willis, Executive Officer of UKHMA, says: “ The Government’s maritime focus rightly has up to now been on the ferries, cargo, shipping and passenger sectors. We knew that the leisure and recreational sector would be challenging as lockdown restrictions begin to be lifted – events on the ground are currently outstripping official communication and planning.

“ There seems to be a real mixture of response from ports, harbours and marinas around the UK following the Prime Minister’s statement at the weekend,” he says. “It’s really up to the individual harbour authority or marina facility to do what’s best to manage the risk level regarding their operations, their stakeholders and the public based on the latest Government guidance regarding social distancing and safe operating measures.

“ There will be a mixture of very proactive ports who are ready, and some who are a bit slower due to individual operational circumstances. It feels like there is lots of pressure to open up around the Solent, less possibly elsewhere in areas of the UK.

“ People do need to take the time to get back to their vessels to check on the safe condition of the craft and their equipment, making sure all their equipment is in date and ready to use as necessary, to avoid placing undue burden on the RNLI and other rescue services.”

In Portsmouth, the Queen’s Harbour Master had this to say:  

“ Following the Government’s revised social distancing measures aimed at reducing the spread of the COVID-19 coronavirus, we are continuing to review our advice to recreational boaters in concert with industry bodies and the regional ports and harbours. Further clarity is currently being sought from the Department for Culture, Media and Sport who are setting details of how facility operators and water users will be required to comply, and our advice will be updated in line with this guidance.

“ In the meantime, QHM Portsmouth continues to operate an open port policy, the primary purpose of which is to protect defence output and commercial activity including vital transport, trade routes, and industry.

“ Some leisure facility providers within the Dockyard Port are considering the feasibility of re-opening while addressing how to manage constraints which may be imposed to meet the Government’s requirements.

“ Individuals whose circumstances permit them access to the water are encouraged to consider the following:

• Whether your activity is being carried out in conformance with Government regulations for social distancing and exercise, including on the shore when accessing the water
• Whether sufficient maintenance has been conducted on your vessel to ensure it remains serviceable and seaworthy, reducing the risk of needing external assistance
• Any other aspects which increase the risk of depending on emergency responders including experience levels and prevailing conditions.

“ The fact that at present there are no RNLI lifeguards on beaches, no Volunteer Harbour Patrol in Portsmouth Harbour, and although volunteer lifeboat crews are fully operational should they be needed, it is important that anyone visiting the coast understands the risk and takes the necessary steps to keep themselves safe. ”

Acknowledgement to Marine Industry News

For more information contact European Marine Services Ltd. 

     Marine Surveyors & Consultants | ADR Mediation  |  Expert Witness 
www.europeanmarinesurveys.com
Tel: (44) 01603 327 123

When American entrepreneur, John Staluppi, decided in the early 1980s that he wanted the fastest superyacht in the world – one that could break the 50 knot (57.5mph) barrier – every boatyard told him it couldn’t be done. Every boatyard except Heesen Yachts in the Netherlands.

It rose to the challenge in spectacular style, delivering Octopussy in 1988 – a boat the size of a small house that was actually capable of a world-record-beating 53.17 knots (61mph). And now a new documentary has revealed the fascinating story behind this remarkable feat of engineering, according to the Daily Mail.

Called Octopussy: The Yacht That Could Not Be Built, it tells how Staluppi, after investigating the highest horsepower engines available, took the unprecedented step of buying three immensely powerful MTU power units and went looking for a naval architect to design a boat around them. But it was an order too tall for everyone he approached.

He says in the documentary: “I could never have the biggest yacht in the world, but I knew that I could have the fastest yacht in the world. [But] some people [I approached] would look at it and go back to engineering departments then come back and say ‘it’s impossible’.”

However, Frank Mulder of Mulder Design, a skilled naval architect from the Netherlands, after six weeks of calculations, said the project was possible.

Staluppi continues: “Mulder said that he only knew one shipyard that might take the challenge. And that’s how we got started with Frans Heesen, who was supposed to be the best.”

Staluppi continues: “Mulder said that he only knew one shipyard that might take the challenge. And that’s how we got started with Frans Heesen, who was supposed to be the best.”

Shortly after, in a meeting in Fort Lauderdale, Heesen accepted Staluppi’s challenge to build the fastest superyacht in the world.

In an age before computers, he was the first to say that ‘if he [Mulder] comes up with the right drawings and calculations… then I will build you this boat’.

The documentary reveals that Heesen was so supremely confident in his team’s engineering and craftsmanship, he even agreed to a legally binding penalty clause in the contract that if Octopussy did not reach 48 knots (55mph) at launch, Staluppi would not have to take the boat or pay for the cost.

In addition, for every knot under 50 that the top speed equalled, the shipyard would have to pay Staluppi $100,000 (£80,000). That’s the equivalent of $200,000 (£160,000) in today’s money.

However, for every knot over 50, Heesen Yachts would receive a $200,000 bonus ($430k/£345k in today’s money).

Staluppi says: “It was a risky challenge for a shipyard – if it went under 48 knots, I didn’t have to take the boat and they’d give me all my money back.

“So, I bought a radar gun. And he [Frans Heesen] said ‘OK, we can do it’.”

Financially the yard could not survive such a loss, but the documentary shows that with the international press following Staluppi’s every move, an ambitious Heesen decided to risk the entire future of the company for the opportunity to put the shipyard’s name on the global stage.

From then, each decision, from the water jets specified to the appliances that Staluppi’s wife, Jeanette, chose were defined by weight.

All parties worked around the clock to ensure the boat was as light as possible to facilitate hitting the 50knot goal.

When it was launched in April 1988, Octopussy not only looked sleeker than any other yacht at the time with its futuristic design, but exceeded all expectations with its astounding top speed of 53.17 knots (61mph).

The gamble had paid off. Staluppi realised his dream and Heesen Yachts became an international sensation.

In 2015, Octopussy underwent a refit with the length extended to 44m (144ft), while New York designer, Jeff Lincoln, updated its interior in a manner which no Bond villain, ever, could bear to be seen in.

Acknowledgement to Marine Industry News

For more information contact European Marine Services Ltd. 

     Marine Surveyors & Consultants | ADR Mediation  |  Expert Witness 
www.europeanmarinesurveys.com
Tel: (44) 01603 327 123

INFORMATION from EUROPEAN MARINE SERVICES Ltd. Regarding – REMOTE TONNAGE MEASUREMENT(s)
During the CORONAVIRUS PANDEMIC

EMS Tonnage Measurers are able to carry out tonnage measurement for the purpose of Part 1 Registration with the Registrar General of Shipping and Seamen. The EMS service is available to all craft of less than 24 metres in length, excluding fishing vessels.

Extract from Annex B – MIN 612 (1)

Issued 24 March 2020 by the Maritime and Coastguard Agency (MCA)

“Calculations and measurements are to be completed as per the relevant regulations and are acceptable when obtained from the following:

1) A sister vessel of a series build which is in possession of an existing Tonnage Certificate, issued on behalf of the Government of the United Kingdom of Great Britain and Northern Ireland

2) Measurements taken from drawings of the vessel
on the condition that at the earlier opportunity the vessel is formally measured. Should the measurement result in a variation of tonnage greater than 2% the tonnage certification should be re-issued.

This general exemption should be attached to any tonnage certificate issued under the exemption granted by it.

This exemption, which may be modified or revoked at any time, shall otherwise remain valid until:
23rd March 2021”

EMS are Approved Tonnage Measurers by certifying authorities

For more information contact European Marine Services Ltd. 

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David Geffen’s picture-perfect self-seclusion is highlighting ugly divisions in the age of the coronavirus pandemic.

“Isolated in the Grenadines avoiding the virus,” the billionaire, 77, said in an Instagram post. “I’m hoping everybody is staying safe.”

The photos of his luxury confinement aboard the 454-foot Rising Sun, one of the world’s biggest private vessels, triggered an immediate social-media backlash over the weekend, according to Bloomberg.

Geffen’s Caribbean excursion is the latest revelation of how the crisis is affecting people unequally across the globe. While the world’s wealthy have fled to vacation homes, specially made bunkers or floating palaces, rank-and-file workers from nurses to supermarket cashiers have been left juggling childcare and risking infection working jobs deemed essential.

The Rising Sun has been in the Caribbean since mid-November and has sailed back and forth between Grenada, St. Vincent and the Grenadines since February. Built for Oracle Corp. founder Larry Ellison, the yacht comes with a gym, cinema and wine cellar. It’s not the only billionaire’s boat in the Caribbean, with Roman Abramovich’s Eclipse and Ernesto Bertarelli’s Vava II also dropping anchor in the region.

Geffen, who has a net worth of $9 billion according to the Bloomberg Billionaires Index, didn’t respond to a request for comment.

While the ship may seem like a floating haven, there’s the risk of a guest or crew member becoming ill. The getaway could “quickly turn into a quarantine nightmare” according to industry publication Superyacht Times.

That has already been demonstrated by cruise-line companies, some of whose ships have been denied entry to ports after virus outbreaks among passenger and crew.

Those fears have also affected the superyacht industry, which employs more than 160,000 people worldwide. Geffen is an exception in an environment where few of the world’s rich are willing to spend huge sums on buying or renting extravagant vessels during the pandemic and market rout.

“Our market has basically come to a standstill overnight,” says Jonathan Beckett, chief executive officer of yacht broker Burgess. “It’s a matter of sitting it out and being able to afford to sit out.”

The number of yachts in the US in recent weeks has swelled from a month earlier, while those in the Bahamas and Sint Maarten declined. Italy, a COVID-19 hotspot, also saw a steep drop in the number of yachts in its waters.

Many Caribbean islands “have shut down,” says Raphael Sauleau, CEO of yacht broker Fraser. “We had a charter that was supposed to disembark in one place but couldn’t.”

The yacht season in the Mediterranean is struggling before it even starts. The Monaco Grand Prix in May has been cancelled, and regular attendees to the principality’s yacht show in September are hesitant about making financial commitments while many of the super-rich are in isolation.

“We would sign a contract, but we’re not going to be paying non-refundable deposits – that’s for sure,” Beckett says. “[The pandemic] is going to have a big impact on our industry this year. You’ve got to ride out the storm and do the very best you can.”

Geffen isn’t likely to reveal when he steps ashore. The billionaire made his Instagram account private soon after Saturday’s post, according to Bloomberg.

Acknowledgement to Marine Industry News
For more information contact European Marine Services Ltd. Marine Surveyors & Consultants
EMS also undertake Boat Safety Inspections & Engine Inspections
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Tel: 01603 327 123

The Chancellor has announced a UK-wide scheme giving direct cash grants to self-employed individuals. If you are eligible the Government will contact you and ask you to apply online.

Rishi Sunak has set out plans that will see the self-employed receive up to £2,500 per month in grants for at least 3 months.

Those eligible could receive a cash grant worth 80% of their average monthly trading profit over the last three years. This covers 95% of people who receive the majority of their income from self-employment.

This brings parity with the Coronavirus Job Retention Scheme, announced by the Chancellor last week, where the Government committed to pay up to £2,500 each month in wages of employed workers who are furloughed during the outbreak.

Self-employed marine industry workers who are eligible for the new scheme will be invited to apply directly to HMRC for the taxable grant, using an online form.

The scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19. More details are on Gov.uk.

To qualify, more than half of a worker’s income in these periods must come from self-employment.

To minimise fraud, only those who are already in self-employment and meet the above conditions will be eligible to apply. HMRC will identify eligible taxpayers and contact them directly with guidance on how to apply.

Acknowledgement to Marine Industry News

For more information contact European Marine Services Ltd. Marine Surveyors & Consultants
EMS also undertake Boat Safety Inspections & Engine Inspections
www.europeanmarinesurveys.com
Tel: 01603 327 123