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HMRC internal manual

Employment Status Manual

HM Revenue & Customs
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Particular occupations: entertainers - NICs treatment (from 6 April 2014)

SS (Categorisation of Earners) Regulations 1978 (SI 1978 No.1689) Regulation 1(2), paragraph 5A in Part I of Schedule 1, and paragraph 10 in Schedule 3

SS (Categorisation of Earners) (Amendment) Regulations 2003 (SI 2003 No. 736)

SS (Categorisation of Earners) (Amendment) Regulations 2003 (SI 2003 No. 736)

The Social Security (Categorisation of Earners) Regulations 1978 were repealed to remove entertainers with effect from 6 April 2014. The regulations therefore no longer apply to entertainers from tax year 2014 to 2015 and subsequent years. This means that from 6 April 2014, most entertainers’ earnings will no longer be brought within the ambit of Section 6 of SSCBA 1992 (which places a Class 1 NICs charge on them).

The effect of this will be that from 6 April 2014, payments to entertainers paid under a contract for services (that is self-employment) will be liable to Class 2 and Class 4 NICs. This includes payments made to entertainers after 6 April 2014 but which derive from a contract for services entered into before this date.

Entertainers who are not already registered with HMRC as self-employed are required to do so, unless they are only engaged on a PAYE contract, as there will still be a Class 1 liability for those entertainers who are employed under a contract of service (employment).

From 6 April 2014, provided a Producer is not engaging performance services of entertainers via a contract of service (employment), they will not be required to deduct Class 1 NICs from any payments of earnings they make. This includes additional use payments such as royalties. The engager will make payments gross of tax and NICs, and the entertainers will be required to declare these earnings as part of their overall normal self-employed earnings upon their annual Self-Assessment tax return.