Our Shipping sector support
At Menzies LLP, we know the shipping industry faces growing complexity and uncertainty. Our dedicated team works closely with shipping businesses of all sizes to take the stress out of finance, tax, and compliance, so you can focus on keeping your operations moving and your business competitive.
Whether it’s getting shipping cost allocation right, offering practical support with lease accounting for vessels and shipping revenue recognition, or assisting with vessel value in use calculations for LTV covenants, we’re here to help. We also provide technical accounting guidance, tonnage tax advice, and support with optimising capital allowances as part of our comprehensive range of compliance, group restructuring and advisory services.
Shipping is a global business, and we can assist with international tax matters including VAT and customs and global mobility questions to help you manage risks and stay compliant wherever you operate.
Whether you’re focusing on short-term strategies or aiming for long-term growth Menzies LLP is the partner you can rely on in the maritime sector.
Key challenges in the sector
The shipping industry faces major challenges including the tightening of environmental regulations, rising fuel costs, and uncertainty around global supply chain disruptions and geographical / geopolitical tensions. Here at Menzies, we can provide vital tailored support to clients by helping them navigate financial complexity, regulatory compliance, and strategic planning including transfer pricing, cash flow planning and M&A transactions.
Taxation is a particularly important area, with operators needing to navigate complex regimes while maintaining competitive. Two key areas to understand are VAT in the shipping industry and the tonnage tax regime. Each carries specific rules, implications, and opportunities for shipping businesses.
VAT & customs in the Shipping industry
VAT plays a key role in the shipping industry, affecting vessel sales and leases, international transport, and ship repairs. Customs duties add further complexity when goods cross borders, impacting import procedures and compliance, particularly when reliefs can apply. Navigating these rules is challenging, especially across jurisdictions or service types.
Read more about VAT & Customs from Sean Turner’s article.
Tonnage tax regime
Tonnage tax offers an alternative to standard corporation tax for qualifying UK shipping companies and groups. Rather than being taxed on actual profits, companies pay tax based on the net tonnage of their fleet, providing greater certainty and potentially lower tax liabilities.
Read more about Tonnage tax from Lucy Mangan’s Tonnage article.
Our detailed tonnage tax fact sheet is coming soon!
Our Insights
Shipping VAT & customs
Qualifying ships The supply of most qualifying ships is zero-rated for VAT purposes. A qualifying…
Sale and leaseback arrangements in the Shipping…
Since the global financial crisis, ship financing has evolved significantly. The instability of the shipping…
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