Yachting finance glossary
The words owners, captains, crew and managers meet when money moves on a yacht, from APA and the MYBA contracts to crew agreements, VAT, accounts and payments, each explained in a few plain sentences.
Yacht finance terms, explained in plain words
Running a yacht means dealing with charter contracts, crew employment rules, customs and VAT, and the way money moves between accounts. This glossary explains the terms that come up most, with a link to the rule book or regulator behind each one where there is one.
Where a SeaPay product does the job a term describes, the definition says so in one line. SeaPay is not a bank: accounts and financial services are provided by PRIVAT 3 MONEY Ltd., authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (FRN 900989). Electronic money is not covered by the FSCS.
The definitions are general information, not tax, legal or employment advice. Rules differ by flag, country and contract, so check the source and take advice for your own case.
Last reviewed 13 October 2026 · SeaPay
- AML (anti-money laundering)
- The laws and controls that stop the proceeds of crime, and money for terrorism, moving through the financial system. In the UK, firms supervised under the Money Laundering Regulations must assess the risks their business faces, apply policies and procedures to reduce them, carry out risk-based due diligence on customers and keep monitoring them. Source
- APA (Advance Provisioning Allowance)
- Money a charterer pays in advance, on top of the charter fee, for running costs the fee doesn’t cover, such as fuel, food and drink, and berthing and harbour dues. Under the MYBA charter agreement it is passed to the captain before embarkation. The captain tells the charterer at intervals how it is being spent, and if it runs low the charterer tops it up. SeaPay’s service for superyachts includes APA and financial dashboards, per charter and per vessel. Source
- APA reconciliation
- Accounting for the APA at the end of a charter. Under the MYBA charter agreement, before the guests leave, the captain gives the charterer a detailed account of spending with as many supporting receipts as possible. The charterer then pays any shortfall, or the captain repays what is left over. SeaPay ReceiptKeeper, coming to the App Store, lets crew snap each receipt on board: it is read on seapay.network, filed with the company and matched to the card payment it belongs to. Source
- Bank reconciliation
- Checking the entries in a business’s books against its bank statements, so that every entry on both sides is accounted for and the bank balance in the accounts is shown to be right. SeaPay Paymaster matches every entry to its paper and files it under a category your accountant recognises. Source
- Bareboat charter
- Hiring a yacht or ship for a set period on terms that give the charterer possession and control of it, including the right to appoint the master and crew. It is also called a charter by demise. On a crewed charter under the MYBA charter agreement, by contrast, the charter fee includes the crew’s wages, uniforms and food. Source
- BIC (Business Identifier Code)
- An international code of 8 or 11 characters that identifies a bank or other financial institution: an institution code, a country code, a location code and, optionally, a branch code. SWIFT is the registration authority for BICs. A SeaPay account certificate states each account’s number, IBAN and BIC, and carries a signed QR code anyone can check in the browser. Source
- Charter fee
- The price of hiring a crewed yacht for the charter period. Under the MYBA charter agreement it covers the yacht and its equipment, basic consumable stores, the crew’s wages, uniforms and food, and the insurance of the yacht and crew. The charterer pays at cost for everything else, including fuel, food and drink for the guests, and berthing and harbour dues. Source
- Crew payroll company
- A company that employs a yacht’s crew and runs their payroll, so the owner is not their direct employer. SeaPay sets up payroll companies that act as the crew’s official employer: salaries, taxes and social security are handled, and the owner is kept clear of direct employment liabilities. Employment rules depend on the flag and the countries involved. This is general information, not legal advice.
- Electronic money (e-money)
- Money stored electronically, usually in an online account or wallet, or on a prepaid card. It is not protected by the FSCS. Money held in a SeaPay account is electronic money issued by PRIVAT 3 MONEY Ltd.: it is not a deposit, and no interest is paid on it. Source
- EMI (Electronic Money Institution)
- A firm that issues e-money and provides payment services without being a bank; EMIs can also provide non-bank current accounts. In the UK, EMIs must be authorised or registered by the Financial Conduct Authority and must safeguard their customers’ money. SeaPay is not a bank: its accounts and financial services are provided by PRIVAT 3 MONEY Ltd., authorised and regulated by the FCA as an Electronic Money Institution (FRN 900989). Source
- ENG1
- The UK seafarer medical fitness certificate. Seafarers working on UK sea-going ships must hold a valid ENG1, or an equivalent certificate the MCA accepts from another country. It is issued after an examination by an MCA-approved doctor and lasts up to two years, or one year for seafarers under 18. In SeaPay’s apps, captains and crew can keep their payslips and certificates. Source
- Escrow
- An arrangement in which a neutral third party holds money until the agreed conditions are met, then releases it to the right party. In a yacht sale on MYBA’s sale and purchase agreement, the stakeholder holds the buyer’s deposit on behalf of buyer and seller. With SeaPay Escrow, a secure, neutral third party holds the funds: the buyer’s funds are held in a UK escrow account until every term of the sale agreement is met, then released to the seller. If the vessel doesn’t meet the conditions, once the seller has the vessel back, the funds return to the buyer. This is general information, not legal advice. Source
- Flag state
- The country where a yacht or ship is registered and whose flag it flies. Each state sets the conditions for registering ships and flying its flag, and must exercise jurisdiction and control over its ships in administrative, technical and social matters. Rules on board, such as crew employment agreements under MLC 2006, are applied through the laws of the flag state. Source
- FSCS (Financial Services Compensation Scheme)
- The UK scheme that returns people’s money if a bank, building society or credit union fails. Its deposit protection limit has been £120,000 since 1 December 2025. It can’t protect money held with e-money institutions, including money in a SeaPay account; e-money firms protect customers’ money by safeguarding it instead. Source
- Holding company
- A company that owns or controls other companies. Under UK company law, a company is another’s holding company if it holds a majority of its voting rights, or is a member with the right to appoint or remove a majority of its board, or controls a majority of the voting rights by agreement with other members. In yachting, a holding company can sit above one or more yacht-owning companies. SeaPay Workstation shows every vessel, shore-based company and holding you run, with the ownership structure and share percentages. Source
- IBAN (International Bank Account Number)
- A code, standardised by ISO for international use, that identifies one account at one financial institution in one country. It expands the domestic account number and includes the bank identifier of the institution that holds the account. SeaPay Me comes with dedicated IBANs, and SeaPay Network and SeaPay World with dedicated multi-currency IBANs. Source
- ISM Code (International Safety Management Code)
- The IMO’s international standard for the safe management and operation of ships and for pollution prevention, made mandatory under SOLAS from 1 July 1998. It requires a safety management system run by the ‘Company’: the owner, or another organisation or person, such as the manager or the bareboat charterer, that has taken over responsibility for operating the ship. Source
- KYC (know your customer)
- The checks a financial firm makes before and during a relationship: confirming who the customer is, finding out what the relationship is for and, for a company, recording its directors and identifying its beneficial owners. In the UK these checks are risk-based, with more intrusive due diligence for higher-risk customers. To open a SeaPay business account, SeaPay confirms the details of the company’s directors and primary shareholders. Source
- MLC 2006 (Maritime Labour Convention)
- The International Labour Organization’s convention on seafarers’ working and living conditions, in force since 20 August 2013. It covers employment agreements, hours of work and rest, payment of wages, paid annual leave, repatriation, medical care on board and accommodation, among other things. Wages must be paid at least monthly. It applies, with some exceptions, to ships ordinarily engaged in commercial activities. SeaPay’s payroll companies follow maritime labour law and each jurisdiction’s rules. Source
- MYBA charter agreement
- The standard contract for a crewed yacht charter, published by MYBA, the worldwide yachting association. It sets the charter fee, the APA, delivery and re-delivery, the security deposit and the cruising area, and what happens on cancellation. The money is held by a stakeholder in a designated account and paid out as the contract says. MYBA updates its contracts regularly, so check which version a charter uses. Source
- MYBA MOA (memorandum of agreement)
- MYBA’s standard agreement for the sale and purchase of a yacht. The buyer pays a deposit to a stakeholder, who holds it on behalf of buyer and seller. The yacht then goes through a sea trial and a condition survey before acceptance and completion, and the agreement sets out when the deposit goes back to the buyer. MYBA’s 2005 form set the deposit at 10% of the price; MYBA updates its forms, so check the version in use. Source
- OPEX (operating expenditure)
- What it costs to run a yacht, such as the crew, fuel, berthing and harbour dues, insurance, maintenance and provisions, as distinct from the cost of buying it. SeaPay Workstation follows the season’s budget line by line.
- Petty cash
- Cash kept for small purchases. Cash taken out and each small payment are written up in a petty cash book, so the cash can be accounted for. For crew spending on board and ashore, SeaPay offers a pre-paid card for crew, loaded from a SeaPay account. Source
- Red Ensign Group
- The group of UK shipping registers: the United Kingdom, the Crown Dependencies of the Isle of Man, Guernsey and Jersey, and nine UK Overseas Territories, including Bermuda, the British Virgin Islands, the Cayman Islands and Gibraltar. Category 1 registers can take ships of unlimited tonnage, type and length. Category 2 registers can take commercial ships and pleasure vessels of up to 150 GT, or 400 GT by agreement with the UK. Source
- Safeguarding
- How e-money and payment firms protect their customers’ money: they keep it separate from the firm’s own money, in a separate account with a bank or covered by an insurance policy or similar guarantee, so it can be returned if the firm fails. PRIVAT 3 MONEY Ltd, which provides SeaPay accounts, safeguards client funds in line with the Electronic Money Regulations 2011, in a segregated bank account opened for the benefit of its clients. Source
- SEA (seafarer employment agreement)
- The contract between a seafarer and the shipowner, or the shipowner’s representative, that MLC 2006 requires both to sign. It must state, among other things, the seafarer’s role, the wages or how they are worked out, paid annual leave, how the agreement ends, health and social security protection, and repatriation. With SeaPay payroll, each crew member sees their own payslips and contract in SeaPay ReceiptKeeper. Source
- SED (Seafarers’ Earnings Deduction)
- UK income tax relief for people who work on a ship and spend long enough working outside the UK: usually an eligible period of at least 365 days, mostly made up of days away from the UK. It is open to UK residents and residents of EEA states, but not to Crown employees such as Royal Navy sailors. UK residents claim it through Self Assessment, using HMRC’s working sheet HS205. This is general information, not tax advice. Source
- SEPA (Single Euro Payments Area)
- 41 European countries, including countries outside the EU such as the UK, Switzerland and Monaco, where euro credit transfers and direct debits follow the same scheme rules across borders as at home. SEPA instant credit transfers make money available in the payee’s account within ten seconds. SeaPay offers incoming and outgoing transfers in several currencies, including SEPA and SWIFT payments. Source
- Signed statement
- A bank or VAT statement that carries a digital signature, so an accountant, an auditor or a buyer can check it without calling anyone. In SeaPay Paymaster, every statement carries a signed QR code: scan it and SeaPay’s verifier checks the signature against SeaPay’s public key, in the browser. Each line also carries a QR code that opens its invoice or receipt.
- SPV (special purpose vehicle)
- A separate company set up for one purpose, such as owning a single yacht, with its own assets and liabilities. SeaPay’s service for superyachts covers ownership and compliance, including holdings, SPVs and flags, and SeaPay World accounts are for companies registered outside the EU and UK, including offshore structures.
- Stakeholder
- In MYBA contracts, the party named to hold the money, sometimes the broker, in a designated account and pay it out only as the contract says. Under the MYBA charter agreement the stakeholder pays the charter fee to the owner and passes the APA to the captain. Under the MYBA sale and purchase agreement it holds the buyer’s deposit on behalf of buyer and seller. Source
- STCW
- The IMO’s International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, adopted in 1978 and revised in 1995 and again by the 2010 Manila amendments. It sets minimum standards for training, certification and watchkeeping that countries must meet or exceed. SeaPay Workstation keeps crew certificates with the date each renews. Source
- SWIFT
- The Society for Worldwide Interbank Financial Telecommunication: a member-owned cooperative, registered in Belgium, whose messaging services carry payment instructions between financial institutions in more than 220 countries and territories. It plays a central role in correspondent banking, where one bank makes or receives payments on behalf of another. SeaPay offers incoming and outgoing transfers in several currencies, including SWIFT payments. Source
- Temporary admission
- A customs procedure that lets a yacht registered outside the EU, and owned by someone established outside the EU, be used privately in the EU without paying import duty or VAT. It must leave the EU within 18 months. The UK runs its own version: a vessel registered outside the UK to a person established outside the UK, and used privately by a non-UK resident, may stay up to 24 months in Great Britain or 18 months in Northern Ireland with relief from duty and VAT. This is general information, not tax advice. Source
- UBO (ultimate beneficial owner)
- The real person who, in the end, owns or controls a company. Under UK anti-money laundering rules that includes anyone who ultimately owns or controls more than 25% of its shares or voting rights, directly or indirectly, or who otherwise exercises ultimate control over its management. Source
- VAT-paid status
- The everyday name for a boat that has the customs status of Union goods with VAT at import paid in the EU. Customs ask for proof only in rare cases. When they do, an owner can show the original invoice or sales contract with proof of VAT payment, or ask customs in the country where the boat is usually kept for a T2L document. This is general information, not tax advice. Source
- Yacht management company
- A firm that runs a yacht on its owner’s behalf. Under the ISM Code, a manager that has taken over responsibility for operating a ship becomes the ‘Company’ and takes on the code’s duties for safety management. SeaPay Workstation is the workspace for yacht management companies: every vessel, shore-based company and holding they run, with every bank each company uses. Source
Asked and answered.
What happens to unused APA?
Under the MYBA charter agreement, the captain gives the charterer a detailed account of APA spending, with as many supporting receipts as possible, before the guests leave at the end of the charter. If money is left over, the captain repays it to the charterer. If spending ran over, the charterer pays the difference to the captain.
What does an escrow agent do?
An escrow agent is a neutral third party that holds money for both sides of a deal and releases it only when the agreed conditions are met. In a yacht sale on MYBA’s sale and purchase agreement, the stakeholder holds the buyer’s deposit on behalf of buyer and seller. With SeaPay Escrow, a secure, neutral third party holds the funds: the buyer’s funds are held in a UK escrow account until every term of the sale agreement is met, then released to the seller. If the vessel doesn’t meet the conditions, once the seller has the vessel back, the funds return to the buyer. This is general information, not legal advice.
What does ‘VAT not paid’ mean for a yacht?
It usually means the yacht doesn’t have the customs status of Union goods with VAT at import paid in the EU. A yacht registered outside the EU and owned by someone established outside the EU can still be used privately in the EU under temporary admission without paying import duty or VAT, but it must leave within 18 months. This is general information, not tax advice.
What must a seafarer employment agreement contain?
Under MLC 2006, the agreement must be signed by the seafarer and the shipowner or the shipowner’s representative. It must give, among other things, the seafarer’s name, date of birth or age and birthplace, the shipowner’s name and address, the role, the wages or how they are worked out, paid annual leave, how the agreement ends, health and social security protection, and repatriation, plus anything the flag state’s law adds. Wages must be paid at least monthly. This is general information, not legal advice.
What is the Seafarers’ Earnings Deduction?
It is UK income tax relief for people who work on a ship and spend long enough working outside the UK: usually an eligible period of at least 365 days, mostly made up of days away from the UK. UK residents and residents of EEA states can claim it; Crown employees such as Royal Navy sailors can’t. UK residents claim through Self Assessment, using HMRC’s working sheet HS205. This is general information, not tax advice.
What is a yacht holding company?
A holding company owns or controls other companies. Under UK company law, a company is another’s holding company if it holds a majority of its voting rights, or is a member with the right to appoint or remove a majority of its board, or controls a majority of the voting rights by agreement with other members. In yachting, a holding company can sit above one or more yacht-owning companies. SeaPay Workstation shows holdings, vessels and shore-based companies together, with share percentages. This is general information, not legal advice.
Is SeaPay a bank?
No. SeaPay is not a bank or a financial institution. Accounts and financial services are provided by PRIVAT 3 MONEY Ltd., authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (FRN 900989). Money in a SeaPay account is electronic money: PRIVAT 3 MONEY Ltd safeguards client funds in line with the Electronic Money Regulations 2011, and electronic money is not covered by the FSCS.
Where to go next.
More regions and languages will be added here.
Yachting finance glossary
The words owners, captains, crew and managers meet when money moves on a yacht, from APA and the MYBA contracts to crew agreements, VAT, accounts and payments, each explained in a few plain sentences.
Yacht finance terms, explained in plain words
Running a yacht means dealing with charter contracts, crew employment rules, customs and VAT, and the way money moves between accounts. This glossary explains the terms that come up most, with a link to the rule book or regulator behind each one where there is one.
Where a SeaPay product does the job a term describes, the definition says so in one line. SeaPay is not a bank: accounts and financial services are provided by PRIVAT 3 MONEY Ltd., authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (FRN 900989). Electronic money is not covered by the FSCS.
The definitions are general information, not tax, legal or employment advice. Rules differ by flag, country and contract, so check the source and take advice for your own case.
Last reviewed 13 October 2026 · SeaPay
- AML (anti-money laundering)
- The laws and controls that stop the proceeds of crime, and money for terrorism, moving through the financial system. In the UK, firms supervised under the Money Laundering Regulations must assess the risks their business faces, apply policies and procedures to reduce them, carry out risk-based due diligence on customers and keep monitoring them. Source
- APA (Advance Provisioning Allowance)
- Money a charterer pays in advance, on top of the charter fee, for running costs the fee doesn’t cover, such as fuel, food and drink, and berthing and harbour dues. Under the MYBA charter agreement it is passed to the captain before embarkation. The captain tells the charterer at intervals how it is being spent, and if it runs low the charterer tops it up. SeaPay’s service for superyachts includes APA and financial dashboards, per charter and per vessel. Source
- APA reconciliation
- Accounting for the APA at the end of a charter. Under the MYBA charter agreement, before the guests leave, the captain gives the charterer a detailed account of spending with as many supporting receipts as possible. The charterer then pays any shortfall, or the captain repays what is left over. SeaPay ReceiptKeeper, coming to the App Store, lets crew snap each receipt on board: it is read on seapay.network, filed with the company and matched to the card payment it belongs to. Source
- Bank reconciliation
- Checking the entries in a business’s books against its bank statements, so that every entry on both sides is accounted for and the bank balance in the accounts is shown to be right. SeaPay Paymaster matches every entry to its paper and files it under a category your accountant recognises. Source
- Bareboat charter
- Hiring a yacht or ship for a set period on terms that give the charterer possession and control of it, including the right to appoint the master and crew. It is also called a charter by demise. On a crewed charter under the MYBA charter agreement, by contrast, the charter fee includes the crew’s wages, uniforms and food. Source
- BIC (Business Identifier Code)
- An international code of 8 or 11 characters that identifies a bank or other financial institution: an institution code, a country code, a location code and, optionally, a branch code. SWIFT is the registration authority for BICs. A SeaPay account certificate states each account’s number, IBAN and BIC, and carries a signed QR code anyone can check in the browser. Source
- Charter fee
- The price of hiring a crewed yacht for the charter period. Under the MYBA charter agreement it covers the yacht and its equipment, basic consumable stores, the crew’s wages, uniforms and food, and the insurance of the yacht and crew. The charterer pays at cost for everything else, including fuel, food and drink for the guests, and berthing and harbour dues. Source
- Crew payroll company
- A company that employs a yacht’s crew and runs their payroll, so the owner is not their direct employer. SeaPay sets up payroll companies that act as the crew’s official employer: salaries, taxes and social security are handled, and the owner is kept clear of direct employment liabilities. Employment rules depend on the flag and the countries involved. This is general information, not legal advice.
- Electronic money (e-money)
- Money stored electronically, usually in an online account or wallet, or on a prepaid card. It is not protected by the FSCS. Money held in a SeaPay account is electronic money issued by PRIVAT 3 MONEY Ltd.: it is not a deposit, and no interest is paid on it. Source
- EMI (Electronic Money Institution)
- A firm that issues e-money and provides payment services without being a bank; EMIs can also provide non-bank current accounts. In the UK, EMIs must be authorised or registered by the Financial Conduct Authority and must safeguard their customers’ money. SeaPay is not a bank: its accounts and financial services are provided by PRIVAT 3 MONEY Ltd., authorised and regulated by the FCA as an Electronic Money Institution (FRN 900989). Source
- ENG1
- The UK seafarer medical fitness certificate. Seafarers working on UK sea-going ships must hold a valid ENG1, or an equivalent certificate the MCA accepts from another country. It is issued after an examination by an MCA-approved doctor and lasts up to two years, or one year for seafarers under 18. In SeaPay’s apps, captains and crew can keep their payslips and certificates. Source
- Escrow
- An arrangement in which a neutral third party holds money until the agreed conditions are met, then releases it to the right party. In a yacht sale on MYBA’s sale and purchase agreement, the stakeholder holds the buyer’s deposit on behalf of buyer and seller. With SeaPay Escrow, a secure, neutral third party holds the funds: the buyer’s funds are held in a UK escrow account until every term of the sale agreement is met, then released to the seller. If the vessel doesn’t meet the conditions, once the seller has the vessel back, the funds return to the buyer. This is general information, not legal advice. Source
- Flag state
- The country where a yacht or ship is registered and whose flag it flies. Each state sets the conditions for registering ships and flying its flag, and must exercise jurisdiction and control over its ships in administrative, technical and social matters. Rules on board, such as crew employment agreements under MLC 2006, are applied through the laws of the flag state. Source
- FSCS (Financial Services Compensation Scheme)
- The UK scheme that returns people’s money if a bank, building society or credit union fails. Its deposit protection limit has been £120,000 since 1 December 2025. It can’t protect money held with e-money institutions, including money in a SeaPay account; e-money firms protect customers’ money by safeguarding it instead. Source
- Holding company
- A company that owns or controls other companies. Under UK company law, a company is another’s holding company if it holds a majority of its voting rights, or is a member with the right to appoint or remove a majority of its board, or controls a majority of the voting rights by agreement with other members. In yachting, a holding company can sit above one or more yacht-owning companies. SeaPay Workstation shows every vessel, shore-based company and holding you run, with the ownership structure and share percentages. Source
- IBAN (International Bank Account Number)
- A code, standardised by ISO for international use, that identifies one account at one financial institution in one country. It expands the domestic account number and includes the bank identifier of the institution that holds the account. SeaPay Me comes with dedicated IBANs, and SeaPay Network and SeaPay World with dedicated multi-currency IBANs. Source
- ISM Code (International Safety Management Code)
- The IMO’s international standard for the safe management and operation of ships and for pollution prevention, made mandatory under SOLAS from 1 July 1998. It requires a safety management system run by the ‘Company’: the owner, or another organisation or person, such as the manager or the bareboat charterer, that has taken over responsibility for operating the ship. Source
- KYC (know your customer)
- The checks a financial firm makes before and during a relationship: confirming who the customer is, finding out what the relationship is for and, for a company, recording its directors and identifying its beneficial owners. In the UK these checks are risk-based, with more intrusive due diligence for higher-risk customers. To open a SeaPay business account, SeaPay confirms the details of the company’s directors and primary shareholders. Source
- MLC 2006 (Maritime Labour Convention)
- The International Labour Organization’s convention on seafarers’ working and living conditions, in force since 20 August 2013. It covers employment agreements, hours of work and rest, payment of wages, paid annual leave, repatriation, medical care on board and accommodation, among other things. Wages must be paid at least monthly. It applies, with some exceptions, to ships ordinarily engaged in commercial activities. SeaPay’s payroll companies follow maritime labour law and each jurisdiction’s rules. Source
- MYBA charter agreement
- The standard contract for a crewed yacht charter, published by MYBA, the worldwide yachting association. It sets the charter fee, the APA, delivery and re-delivery, the security deposit and the cruising area, and what happens on cancellation. The money is held by a stakeholder in a designated account and paid out as the contract says. MYBA updates its contracts regularly, so check which version a charter uses. Source
- MYBA MOA (memorandum of agreement)
- MYBA’s standard agreement for the sale and purchase of a yacht. The buyer pays a deposit to a stakeholder, who holds it on behalf of buyer and seller. The yacht then goes through a sea trial and a condition survey before acceptance and completion, and the agreement sets out when the deposit goes back to the buyer. MYBA’s 2005 form set the deposit at 10% of the price; MYBA updates its forms, so check the version in use. Source
- OPEX (operating expenditure)
- What it costs to run a yacht, such as the crew, fuel, berthing and harbour dues, insurance, maintenance and provisions, as distinct from the cost of buying it. SeaPay Workstation follows the season’s budget line by line.
- Petty cash
- Cash kept for small purchases. Cash taken out and each small payment are written up in a petty cash book, so the cash can be accounted for. For crew spending on board and ashore, SeaPay offers a pre-paid card for crew, loaded from a SeaPay account. Source
- Red Ensign Group
- The group of UK shipping registers: the United Kingdom, the Crown Dependencies of the Isle of Man, Guernsey and Jersey, and nine UK Overseas Territories, including Bermuda, the British Virgin Islands, the Cayman Islands and Gibraltar. Category 1 registers can take ships of unlimited tonnage, type and length. Category 2 registers can take commercial ships and pleasure vessels of up to 150 GT, or 400 GT by agreement with the UK. Source
- Safeguarding
- How e-money and payment firms protect their customers’ money: they keep it separate from the firm’s own money, in a separate account with a bank or covered by an insurance policy or similar guarantee, so it can be returned if the firm fails. PRIVAT 3 MONEY Ltd, which provides SeaPay accounts, safeguards client funds in line with the Electronic Money Regulations 2011, in a segregated bank account opened for the benefit of its clients. Source
- SEA (seafarer employment agreement)
- The contract between a seafarer and the shipowner, or the shipowner’s representative, that MLC 2006 requires both to sign. It must state, among other things, the seafarer’s role, the wages or how they are worked out, paid annual leave, how the agreement ends, health and social security protection, and repatriation. With SeaPay payroll, each crew member sees their own payslips and contract in SeaPay ReceiptKeeper. Source
- SED (Seafarers’ Earnings Deduction)
- UK income tax relief for people who work on a ship and spend long enough working outside the UK: usually an eligible period of at least 365 days, mostly made up of days away from the UK. It is open to UK residents and residents of EEA states, but not to Crown employees such as Royal Navy sailors. UK residents claim it through Self Assessment, using HMRC’s working sheet HS205. This is general information, not tax advice. Source
- SEPA (Single Euro Payments Area)
- 41 European countries, including countries outside the EU such as the UK, Switzerland and Monaco, where euro credit transfers and direct debits follow the same scheme rules across borders as at home. SEPA instant credit transfers make money available in the payee’s account within ten seconds. SeaPay offers incoming and outgoing transfers in several currencies, including SEPA and SWIFT payments. Source
- Signed statement
- A bank or VAT statement that carries a digital signature, so an accountant, an auditor or a buyer can check it without calling anyone. In SeaPay Paymaster, every statement carries a signed QR code: scan it and SeaPay’s verifier checks the signature against SeaPay’s public key, in the browser. Each line also carries a QR code that opens its invoice or receipt.
- SPV (special purpose vehicle)
- A separate company set up for one purpose, such as owning a single yacht, with its own assets and liabilities. SeaPay’s service for superyachts covers ownership and compliance, including holdings, SPVs and flags, and SeaPay World accounts are for companies registered outside the EU and UK, including offshore structures.
- Stakeholder
- In MYBA contracts, the party named to hold the money, sometimes the broker, in a designated account and pay it out only as the contract says. Under the MYBA charter agreement the stakeholder pays the charter fee to the owner and passes the APA to the captain. Under the MYBA sale and purchase agreement it holds the buyer’s deposit on behalf of buyer and seller. Source
- STCW
- The IMO’s International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, adopted in 1978 and revised in 1995 and again by the 2010 Manila amendments. It sets minimum standards for training, certification and watchkeeping that countries must meet or exceed. SeaPay Workstation keeps crew certificates with the date each renews. Source
- SWIFT
- The Society for Worldwide Interbank Financial Telecommunication: a member-owned cooperative, registered in Belgium, whose messaging services carry payment instructions between financial institutions in more than 220 countries and territories. It plays a central role in correspondent banking, where one bank makes or receives payments on behalf of another. SeaPay offers incoming and outgoing transfers in several currencies, including SWIFT payments. Source
- Temporary admission
- A customs procedure that lets a yacht registered outside the EU, and owned by someone established outside the EU, be used privately in the EU without paying import duty or VAT. It must leave the EU within 18 months. The UK runs its own version: a vessel registered outside the UK to a person established outside the UK, and used privately by a non-UK resident, may stay up to 24 months in Great Britain or 18 months in Northern Ireland with relief from duty and VAT. This is general information, not tax advice. Source
- UBO (ultimate beneficial owner)
- The real person who, in the end, owns or controls a company. Under UK anti-money laundering rules that includes anyone who ultimately owns or controls more than 25% of its shares or voting rights, directly or indirectly, or who otherwise exercises ultimate control over its management. Source
- VAT-paid status
- The everyday name for a boat that has the customs status of Union goods with VAT at import paid in the EU. Customs ask for proof only in rare cases. When they do, an owner can show the original invoice or sales contract with proof of VAT payment, or ask customs in the country where the boat is usually kept for a T2L document. This is general information, not tax advice. Source
- Yacht management company
- A firm that runs a yacht on its owner’s behalf. Under the ISM Code, a manager that has taken over responsibility for operating a ship becomes the ‘Company’ and takes on the code’s duties for safety management. SeaPay Workstation is the workspace for yacht management companies: every vessel, shore-based company and holding they run, with every bank each company uses. Source
Asked and answered.
What happens to unused APA?
Under the MYBA charter agreement, the captain gives the charterer a detailed account of APA spending, with as many supporting receipts as possible, before the guests leave at the end of the charter. If money is left over, the captain repays it to the charterer. If spending ran over, the charterer pays the difference to the captain.
What does an escrow agent do?
An escrow agent is a neutral third party that holds money for both sides of a deal and releases it only when the agreed conditions are met. In a yacht sale on MYBA’s sale and purchase agreement, the stakeholder holds the buyer’s deposit on behalf of buyer and seller. With SeaPay Escrow, a secure, neutral third party holds the funds: the buyer’s funds are held in a UK escrow account until every term of the sale agreement is met, then released to the seller. If the vessel doesn’t meet the conditions, once the seller has the vessel back, the funds return to the buyer. This is general information, not legal advice.
What does ‘VAT not paid’ mean for a yacht?
It usually means the yacht doesn’t have the customs status of Union goods with VAT at import paid in the EU. A yacht registered outside the EU and owned by someone established outside the EU can still be used privately in the EU under temporary admission without paying import duty or VAT, but it must leave within 18 months. This is general information, not tax advice.
What must a seafarer employment agreement contain?
Under MLC 2006, the agreement must be signed by the seafarer and the shipowner or the shipowner’s representative. It must give, among other things, the seafarer’s name, date of birth or age and birthplace, the shipowner’s name and address, the role, the wages or how they are worked out, paid annual leave, how the agreement ends, health and social security protection, and repatriation, plus anything the flag state’s law adds. Wages must be paid at least monthly. This is general information, not legal advice.
What is the Seafarers’ Earnings Deduction?
It is UK income tax relief for people who work on a ship and spend long enough working outside the UK: usually an eligible period of at least 365 days, mostly made up of days away from the UK. UK residents and residents of EEA states can claim it; Crown employees such as Royal Navy sailors can’t. UK residents claim through Self Assessment, using HMRC’s working sheet HS205. This is general information, not tax advice.
What is a yacht holding company?
A holding company owns or controls other companies. Under UK company law, a company is another’s holding company if it holds a majority of its voting rights, or is a member with the right to appoint or remove a majority of its board, or controls a majority of the voting rights by agreement with other members. In yachting, a holding company can sit above one or more yacht-owning companies. SeaPay Workstation shows holdings, vessels and shore-based companies together, with share percentages. This is general information, not legal advice.
Is SeaPay a bank?
No. SeaPay is not a bank or a financial institution. Accounts and financial services are provided by PRIVAT 3 MONEY Ltd., authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (FRN 900989). Money in a SeaPay account is electronic money: PRIVAT 3 MONEY Ltd safeguards client funds in line with the Electronic Money Regulations 2011, and electronic money is not covered by the FSCS.
Where to go next.
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