News – NI reprieve for orchestras

After eight months of protracted negotiations, 33 British orchestras have learnt that they will not be liable for National Insurance (NI) payments for many of their musicians. Last year, it was revealed that HM Revenue & Customs (HMRC) was investigating the status of freelance orchestral musicians with specific regard to their liability for NI. Concerns were expressed that, should orchestras be found to be liable for NI payments, the eventual bill could top £30m.
Following legal representations to HMRC, arranged and co-ordinated by Arts Council England (ACE), HMRC confirmed that on the basis of the contracts reviewed, most freelance musicians, soloists and conductors will not be liable& the payments made would not be liable to Class 1 NICs because they are fees and not a salary. HMRC now intends to issue detailed guidance to orchestras and musicians which will soon be available on its website. Hilary Boulding, ACEs Director of Music, said, We welcome the outcome of these discussions and the clarity that this offers organisations. This was a good example of the sector working collaboratively& by drawing together a large group of organisations, we were able to address the needs of a wide range of employers of musicians.

http://www.hmrc.gov.uk