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HMRC proposes repeal of NIC rule for self-employed teachers and lecturers

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HMRC is consulting on the possible repeal of NIC regulations for lecturers, teachers, instructors and others working in a ‘similar capacity’ who are self-employed for tax purposes, in the light of ‘particular difficulty’ being met by vocational training providers in understanding HMRC guidance.

The Social Security (Categorisation of Earners) Regulations, SI 1978/1689 and their Northern Ireland equivalent treat as an employed earner for NIC purposes – liable to Class 1 rather than Class 2 and 4 contributions – an individual working as ‘a lecturer, teacher, instructor or in any similar capacity in an educational establishment’.

HMRC ‘reconsidered available documentation’ relating to the regulations, after responses to an earlier consultation showed ‘very little support’ for proposed reform.

It has now concluded that the regulations should be repealed, and is seeking views on the potential positive or negative consequences of the repeal.

Comments are invited by 6 January 2012.