National insurance – entertainment industry
HMRC have published a new Revenue & Customs Brief (10/11) that summarises the national insurance implications for the entertainment industry following the Tribunal’s decision in the case of ITV Services Ltd.
The case concerned the employment status for National Insurance contributions purposes of actors engaged by ITV under a variety of contract types. The Tribunal ultimately agreed with HMRC’s view that the majority of entertainers in the TV, film and theatre industries, engaged on Equity contracts, are to be treated as employed earners for National Insurance contributions purposes.
In light of the Tribunal decision there is a liability for Class 1 National Insurance contributions for all actors on existing Equity contracts.
HMRC confirm in the Brief that they will apply the law immediately to all Equity contracts that are either newly entered into, revised, renewed or extended from the date of Revenue & Customs Brief 10/11 (2 March 2011). Otherwise, the law will be applied from 6 April in respect of all current Equity contracts that continue beyond the end of the 2010/11 tax year, which HMRC would previously have accepted as falling outside the regulations.