Revenue & Customs Brief 29/13: National Insurance contributions, which concerns HMRC's position following the Court of Appeal decision in the case of ITV Services Ltd v Commissioners for HMRC, states that the decision reached in earlier tribunals has been upheld.
The decision upheld that where actors' contracts provided for remuneration by way of salary, there was liability for Class 1 national insurance contributions (NICs) on all remuneration payable under the contract.
Revenue & Customs Brief 35/13 National Insurance Contributions (NICs): Repeal of the Social Security (Categorisation of Earners) Regulations 1978, in respect of entertainers from 6 April 2014, states that the ‘proposed change is that entertainers will no longer be included in the provisions of the Regulations.
This in turn means that entertainers' earnings will no longer be brought within Section 6 of SSCBA 1992 (which places a Class 1 NICs charge on them) from this date.'
It summarises this by stating: 'From 6 April 2014, producers engaging your performance services will not be required to deduct Class 1 NICs contributions from any payments they make to you. This includes additional use payments such as royalties.
Your engager will make payments to you gross of tax and NICs and you must declare these earnings as part of your normal self-employed Self-Assessment return.'
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