§ Mr. David Steel
asked the Chancellor of the Exchequer why the payment of tax by self-employed freelances in the Scottish film industry will now be levied through the PAYE system; and if he will make a statement.
§ Mr. Ridley
Freelance workers in the film industry who are self-employed will continue to be assessed to tax under cases 1 and 2 of schedule D. But, following a review by the Inland Revenue and discussions with representatives of the film industry, a number of workers previously treated as self-employed for income tax purposes are considered to be employees engaged under contracts of service. Any employee who disagrees with his treatment may of course appeal to the commissioners. Employers have been advised to apply PAYE in such cases from 6 April 1983. In many of these cases the effect of the change will be to bring the tax treatment into line with the national insurance treatment. An Inland Revenue press release announcing this was issued on 30 March and I have placed a copy in the Library.8W
It is not possible to give a detailed breakdown of assistance under various small firms schemes such as the small engineering firms investment scheme and the loan guarantee scheme.