This update was first published in the April 2012 UK edition of Accounting and Business magazine.
The Social Security (Categorisation of Earners) Regulations 1978 that apply to lecturers, teachers, instructors or those in a similar capacity who are employed and self-employed, will no longer apply to this group from 6 April 2012. The regulations resulted in certain types of workers being treated as ‘employed earners’ for national insurance contribution (NIC) purposes. This resulted in them being subject to Class 1 NICs, even though they were self-employed for tax and employment purposes.
The changes eliminate the requirement for these earners to apply different NICs where they receive both self-employed and employment income. The regulations the change impacts on are the Social Security (Categorisation of Earners) Regulations 1978 (SI 1978/1689) and the Social Security (Categorisation of Earners) Regulations (Northern Ireland) 1978 (SR 1978 No. 401).
Glenn Collins, head of technical advisory, ACCA UK