New rules threaten to “decimate our orchestras and put our musicians out of work” says Lord Lipsey
Alex Decarvalho
The All Party Parliamentary Classical Music Group is seeking 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. Previously, HMRC’s guidelines on the Special National Insurance Contribution Rules for Entertainers provided a specific exemption for session musicians, but following an Upper Tier Tribunal appeal hearing in the case of ITV Services Ltd v HMRC, self-employed musicians now fall within the regulations for Class 1 National Insurance contributions, potentially meaning employers will have to make deductions from a musician’s fee to pay the tax office a 12% employee contribution and a 13.8% employer contribution. The Music Group met with members of the Association of British Orchestras and the Musicians’ Union last week to hear their concerns. Lord Lipsey, Chairman of the group, said the rule change “threatens to decimate our orchestras and put our musicians out of work.”