Individuals working as actors, singers or musicians will now pay Classes 2 and 4 National Insurance Contributions, aligned with other self-employed workers.
Following consultation, the Government has repealed current National Insurance (NI) regulations in respect of freelance entertainers from 6 April next year. Previously, HMRC’s Guidelines on The Special NIC Rules for Entertainers, issued in April 2005, provided a specific exemption for session musicians, but a ruling last year meant that freelance musicians were no longer exempt from Class 1. This has been a particularly serious problem in the UK orchestral sector, where musicians have been facing an additional 12.5% payment to conform with Class 1 payments. The Association of British Orchestras (ABO) has been working closely with the Musicians Union (MU) and other organisations to provide a robust response to the Government’s consultation. Mark Pemberton, Director of the ABO, said: “The threat to our members, and the damage to their competitiveness, caused by the ruling… has been of immense concern to the ABO.” In February, the All Party Parliamentary Classical Music Group sought a meeting with David Gauke MP, the Exchequer Secretary, to encourage him to authorise a re-writing of the Entertainers Regulations for National Insurance contributions made by session musicians . The MU and ABO have welcomed the Government’s decision to repeal the current NI regulations. 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... The Government’s decision to repeal these regulations is fantastic news for musicians and for the wider music industry.”
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