National Insurance deductions on income from film companies

National Insurance deductions on income from...

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My client has full time employment and is taxed under PAYE. They also work occaisionaly as an extra for various film companies and this is declared as self employment income.

However while this income is not taxed by the film production studios as they are self employed the companies do deduct National Insurance. Is this correct?

My client says that she is entited to a NI refund as she currently pays Class II, Class IV as self employed plus NI from her full time employment and the amounts deducted by the film studios.

Can anyone shed some light if she is being treated correctely for NI and is there any way NI can be refunded? This is my first experience of film companies.

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By ohorad44
14th Feb 2012 10:51

Not necessarily an NI refund

When completing her tax return you need to show a reduction in her self employed profits chargeable to Class 4 NIC.

The income she receives from the film company is treated as self employed for taxation purposes but Employed income for NIC purposes. 

She should actually receive a p60 from the film company ( although very few issue them) which will show an NT tax code but the NI deductions.

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By Marmite
15th Feb 2012 08:53

Thanks ohorad44

So am I correct in thinking that if self employment profits are below the Class IV threshold then the NI paid at source by the film companies is able to be refunded to the client?

 

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Replying to Portia Nina Levin:
By kenny achampong
16th Feb 2012 13:57

Class 4 NI

No, I don't think so.

They are self employed for tax, but employed for NI (as agreed with Equity to enable out of work actors to claim jobseekers) So the NI works the same as with normal payroll, you can't get it back. But to make sure it there are not two lots of NI paid, you put the earnings amount into the self employment page, which then gets knocked off for the Class 4 calculation.

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