Following consultation the Government has decided that entertainers who are engaged under a contract for services (a self-employed contract) should be treated as self-employed for tax, NICs and student loan purposes from 6 April 2014.
The provisions of the Regulations relating to entertainers have been repealed and HMRC have laid regulations by negative resolution in Parliament to repeal the Social Security (Categorisation of Earners Regulations) 1978 as they apply to entertainers with effect from 6 April 2014.
This means that persons employed as actors, singers or musicians or in any similar performing capacity, who are engaged under a contract for services, are subject to taxation and NICs as self-employed earners from this date.
HMRC said in its consultation response, "We believe that this is the correct, transparent and evidence-based option that is clearly supported by public opinion. It provides a simple and permanent solution to a very long-standing issue that has burdened the entertainment industry and caused problems for both it and HMRC for over 10 years. This also aligns with wider Government policy and meets the wishes of the majority of those affected by these Regulations."