Changes to the treatment of self-employed entertainers
17 June 2014
HMRC have confirmed changes to earnings deductions from some self-employed entertainers.
In April this year the Social Security (Categorisation of Earners) Regulations were repealed.
There is no change for those entertainers who have a contract of employment, but in the past, some self-employed entertainers have had National Insurance contributions deducted from their earnings, along with any appropriate Student Loan deductions. Following the repeal of the Regulations, employers must no longer deduct National Insurance contributions, nor make any deductions for Student Loans.
It is important to note that although the deductions must cease, employers will not receive a Stop Notice for any Student Loan deductions they have been making as the employment in effect has ceased.
HMRC are currently preparing guidance which will be issued in the next few weeks.