§ Mr. Derek TwiggTo ask the Secretary of State for Social Security when she expects to announce the results of the review into the position of performers for national insurance purposes; and if she will make a statement. [50749]
§ Mr. DenhamPerformers have generally been treated as self-employed by the Inland Revenue, but as employees for National Insurance purposes. We have received legal advice that the current National Insurance treatment is not sustainable, and that entertainers should generally be regarded as self-employed.
Having considered the position we have decided to table regulations that will again require the majority of performers to be treated as employees for National Insurance purposes, whose earnings will be liable to Class 1 contributions. These regulations will be tabled in the near future.
The Government are considering the longer-term position of the entertainment industry, in the light of the plans announced in my right hon. Friend the Chancellor of the Exchequer's Budget Statement concerning the alignment of tax and National Insurance and will in due course make a further announcement.
It is open to performers and engagers who consider they have incorrectly paid National Insurance Contributions in the belief that workers previously treated as employees 203W should have been treated as self-employed to apply for a refund. This is limited to contributions made in the last 6 years.
Those who wish to do so should contact:
- Ian Halliday
- Contributions Agency
- Refunds Group
- Room 107B
- Longbenton
- Newcastle upon Tyne
- NE98 1YX.