Entertainers Self Employed for National Insurance from 6 April 2014
For many years self-employed entertainers (actors, singers, musicians etc) have been deemed employed earners for National Insurance (NIC) purposes (but not for tax purposes), resulting in the payment of Class 1 rather than Classes 2 and 4 NIC. The purposes of this was to ensure entitlement to earnings-related benefits such as Jobseeker’s Allowance.
Following consultation, the Government has announced its decision that entertainers engaged under a contract for services (a self-employed contract) should be treated as self-employed for both tax and NIC purposes from 6 April 2014. Self-employed entertainers will pay Class 2 and Class 4 NIC from this date.
This decision should remove the complexity and administration burden for many in the entertainment industry.
Contact Katharine Arthur, head of tax, for further details and advice on your employment status and on how this change will impact you.