With less than a month to go before changes to National Insurance (NI) come into force, it seems that many people working in the entertainment industry have been asking the same two questions: am I affected and, if so, is there anything that I can or should do?<\/p>\n
Before we address these questions, let\u2019s get an overview of the legislation.<\/p>\n
Dual status<\/strong><\/p>\n Under the current system, those working in film, TV, theatre, radio and commercial production are treated as employed for NI purposes and self-employed for income tax purposes. This enables low-income earners to qualify for state benefits such as Jobseeker\u2019s Allowance (JSA), which can offer vital income when between roles.<\/p>\n <\/p>\n However, as of 6th April 2014, those working within the entertainment industry will be classed solely as self-employed.<\/p>\n The decision to repeal the dual status follows a public consultation by HMRC, in which an overwhelming number of respondents (99.1% of 11,814 people) voted in favour of a simplified tax system.<\/p>\n National Insurance refunds<\/strong><\/p>\n Despite receiving a mixed response initially, it seems the reforms aren\u2019t so bad after all. In fact, thousands of individuals working in the entertainment industry may be eligible to reclaim up to 100% of their Class 1 National Insurance contributions (NICs) from between 2008\/09 and 2013\/14.<\/p>\n For example, if your income in 2013\/14 was \u00a330,000 you will have paid \u00a32,669.40 in Class 1 NICs over the course of the tax year (Class 1 NIC is calculated at 12% on gross income between \u00a37,755 and \u00a341,450).<\/p>\n However, should you have been treated as self-employed during this time, and the profit on your income was \u00a320,000, then your National Insurance payment would have been just \u00a31,102.05. This is because NICs for self-employed people are set at just 9% for those making annual profits of between \u00a37,755 and \u00a341,450.<\/p>\n Working out the difference between the two figures shows that the individual in the above scenario would be in line for a refund from the taxman of \u00a31,567.35. Not bad, we\u2019re sure you\u2019ll agree!<\/p>\n Eligibility and how to claim<\/strong> With less than a month to go before changes to National Insurance (NI) come into force, it seems that many people working in the entertainment industry have been asking the same two questions: am I affected and, if so, is there anything that I can or should do? Before we address these questions, let\u2019s get […]<\/p>\n","protected":false},"author":17,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","footnotes":""},"categories":[2,11],"tags":[18,41,62,154],"series":[],"class_list":["post-720","post","type-post","status-publish","format-standard","hentry","category-career-advice","category-tips-and-tricks","tag-accounting","tag-clearsky","tag-freelance","tag-tax"],"episode_featured_image":false,"episode_player_image":"https:\/\/www.productionbase.co.uk\/blog\/wp-content\/uploads\/TOTI-Podcast-Artwork.png","download_link":"","player_link":"","audio_player":false,"episode_data":{"playerMode":"dark","subscribeUrls":[],"rssFeedUrl":"https:\/\/www.productionbase.co.uk\/blog\/feed\/podcast\/turn-on-tune-in-2","embedCode":"
\nTo see if you\u2019re owed a National Insurance rebate, and for further help and advice on how to claim this back, contact ClearSky Accounting<\/a> today on 0808 147 1780 or email team.entertainment@clearskybusiness.co.uk<\/a><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"National Insurance Reforms: Are You Eligible For a Refund?<\/a><\/blockquote>