HMRC’s consultation on NICs for self-employed entertainers

HMRC is promoting a refreshingly radical solution to an increasingly problematic area in the NIC treatment of entertainers.

Advisers working in the entertainment sector will know that over the last three years or so HMRC has increased its compliance activity significantly in relation to the scope of the Social Security (Categorisation of Earners) Regulations SI 1978/1689 (‘the regulations’) as they apply to entertainers. Three issues predominate:

• Who is within the definition of ‘entertainer’?
• What is meant by ‘payment by way of salary’?
• Can the regulations make the NIC IR35 rules apply to entertainers’ service companies?

Substantial sums of NIC are at stake; and the status of NIC legislation generally as a largely unexplored continent of statutory interpretation means that debate is always prolix and...