In 1998 the law changed bringing entertainers (actors, singers and musicians) generally within Class 1 National Insurance even where they are self-employed for tax purposes.

HMRC has learned that a number of orchestras have not operated Class 1 NICs on certain categories of musicians since 1998.

HMRC is currently discussing with the Arts Council, the Association of British Orchestras, Opera and Theatre Music Forum, National Musicians Union and the Department for Culture, Media and Sport the implications of the orchestras' failure to deduct Class 1 National Insurance. The Association of British Orchestras and Opera and Theatre Music Forum will be writing to their members to explain the current position of the discussions and the action needed by orchestras.

Orchestras represented by the ABO and Opera and Theatre Music Forum should read the communication and in the first instance contact the ABO or Opera and Theatre Music Forum if they need more information. Orchestras not represented by the ABO or Opera and Theatre Music Forum which have concerns about their operation of Class 1 National Insurance should contact Keith Dixon of HMRC on 0161 261 3255 for advice.

...back to 17 November 2005


Source:
National Insurance Contributions and Orchestras

The UK Payroll News is sponsored by HRD & Payroll Solutions

Discuss this news item in the PayPerShop Forum

Changes to the rules governing the NICs liabilities of entertainers were made by The Social Security (Categorisation of Earners) Amendment Regulations 2003 from 6 April 2003. The principle change was to the definition of "salary", with the effect that most entertainers have a Class 1 NICs liability even though they are not employees for PAYE tax purposes. A detailed guidance article appeared in Tax Bulletin, issue 65, and it was summarised in our newsletter of 27 June 2003.

That guidance has now been updated and is available in a booklet entitled Guidelines on the Special NIC Rules for Entertainers. The guidance now clarifies the position of rights payments where such payments meet the definition of "salary" and are therefore subject to Class 1 NICs. If the initial rights payment is subject to Class 1 NICs, any subsequent payment in the event of a repeat programme is also subject to Class 1 NICs, with the original production company as the secondary contributor.

Discuss this news item in the PayPerShop Forum

...back to 1 October 2004


Source:
www.inlandrevenue.gov.uk/ebu/paye_techpack/expben_0405.htm