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HMRC internal manual

Employment Status Manual

Particular occupations: entertainment industry - TV and radio workers - use of service companies

To avoid PAYE and Class 1 NICs, many television and radio workers in ‘employed’ grades have set up limited companies. Normally the worker is the majority shareholder and a director. It is usually alleged that the service company supplies the services of the individual to the television or radio company.

An examination of many such cases has shown that such arrangements often fail. The worker remains an employee of the television or radio company. Tell the Television and Broadcasting Unit about any service companies of this kind that you find.

Where the worker is not an employee of the television or radio company, you should consider whether the ‘service company’ legislation applies (see ESM3000 onwards).