The repeal, which was announced this morning, means that from 6 April 2014 singers, musicians and anyone performing in a similar capacity will pay Class 2 and Class 4 National Insurance (NI) tax as self-employed earners.
Previously, they fell under Class 1, meaning that organisations, film producers and others employing performers and entertainers (including orchestras) would be liable to pay their National Insurance tax.
John Smith, MU general secretary, said: ‘The MU has lobbied hard over the past year to get the Government and HMRC to change the regulations that state that self-employed musicians now fall under Class 1 National Insurance contributions.
‘The current situation has been hugely problematic for musicians and for those who engage musicians as a result of them having to pay employees’/employers’ NI. Film producers, who bring lucrative inward investment into the UK’s creative economy by way of recording soundtracks for films, have been expressing concern about engaging UK musicians as a result of the extra expense, and some orchestras were also under threat.
‘The Government’s decision to repeal these regulations is fantastic news for musicians and for the wider music industry and we are grateful that HMRC acted so swiftly on this important issue.’
Previously, they fell under Class 1, meaning that organisations, film producers and others employing performers and entertainers (including orchestras) would be liable to pay their National Insurance tax.
John Smith, MU general secretary, said: ‘The MU has lobbied hard over the past year to get the Government and HMRC to change the regulations that state that self-employed musicians now fall under Class 1 National Insurance contributions.
‘The current situation has been hugely problematic for musicians and for those who engage musicians as a result of them having to pay employees’/employers’ NI. Film producers, who bring lucrative inward investment into the UK’s creative economy by way of recording soundtracks for films, have been expressing concern about engaging UK musicians as a result of the extra expense, and some orchestras were also under threat.
‘The Government’s decision to repeal these regulations is fantastic news for musicians and for the wider music industry and we are grateful that HMRC acted so swiftly on this important issue.’
