Entertainers to be self employed for NICS

National Insurance, Personal Tax, Tax/VAT Cases l

Following consultation the Government has decided that entertainers who are engaged under a contract for services (a self-employed contract) should be treated as self-employed for tax, NICs and student loan purposes from 6 April 2014.

The provisions of the Regulations relating to entertainers will be repealed and HMRC will lay regulations by negative resolution in Parliament that will repeal the Social Security (Categorisation of Earners Regulations) 1978 as they apply to entertainers with effect from 6 April 2014.

This means that persons employed as actors, singers or musicians or in any similar performing capacity, who are engaged under a contract for services, will be subject to taxation and NICs as self-employed earners from this date.

HMRC says in its consultation response, “We believe that this is the correct, transparent and evidence-based option that is clearly supported by public opinion. It provides a simple and permanent solution to a very long standing issue that has burdened the entertainment industry and caused problems for both it and HMRC for over 10 years. This also aligns with wider Government policy and meets the wishes of the majority of those affected by these Regulations.”

Next Steps: a draft of the Statutory Instrument to repeal the relevant parts of the Regulations for self-employed entertainers with effect from 6 April 2014 is forward for technical consultatoin, and comments are invited on the draft Statutory Instrument. These should be submitted by e-mail to by 20 November 2013.

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