Film Unit definitions and IR35

Film Unit definitions and IR35

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The Inland Revenue Film Unit publish guide with a number of jobs in the TV industry and their interpretation of whether these jobs are self employed or employed. I think it would be reasonable to say that if someone operates under one of these grades under Schedule D then they should be able to operate doing the same job without worrying about IR35. Any one agree or am I mssing something?

Also, my understanding is that the IR35 rules were brought out to prevent the employee turning into a limited company overnight. Is it likely that the Inland Revenue would try to make a case against someone who has operated as Schedule D for a number of years and now incorporates but still does the same work?

Thanks all...
Jonathan Ford

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By blueskies
13th May 2003 16:55

Film & TV Industry v's IR35
Hi Jonathan

Our practice specialises in film/TVand media people in front of and behind the camera.

The Film Industry Guidance Notes published by the Revenue (latest 2001) set out clearly the work roles that can be classed as self employed in the industry. It is based totally on the actual work that you do and not the screen credit that you get. If the job being done matches the job title identified as being "self employed", and you meet the other specified conditions then there is no question that you are seen by the Revenue as being self employed - whether as Sched D or under you own Ltd Co and therefore IR35 cannot apply.

The Blue Skies Partnership

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By AnonymousUser
16th Aug 2002 17:21

Agree
Jonathan, I think your interpretations are correct on both points.

However the IR Film & TV unit have their own agenda. Long before IR35 hit us, their guidance had some BS in its section on status sugegsting that a operative with a limited company may not be self employed, and may have to have PAYE stopped. I guess it was never tested in court or before the Specials as I struggle with the concept of stopping PAYE on a payment to a limited company... I haven't seen recenty FTU guidance - hopefully it makes more sense now.

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By AnonymousUser
15th Aug 2002 17:00

FILM UNIT DEFINITIONS/IR35
Jonathan

In my opinion you are correct. IR35 is based around the contract for work rather than a specific `job`.

If a person; performer or technician qualifies as self employed under the same rules that applies to `schedule d` then that person operates outside the scope of IR35.

We have high profile professionals who we have incorporated so that production companies can then make the payments without class 1 deduction. This all centres around the contract between the parties being with abc ltd (production co) and xzy ltd (owned by the performer)for the services of (that performer)rather than with the performer direct.

I do not see how a particular trade/profession can be targeted for IR35 if the contract is effected correctly.

GRAHAM ASSOCIATES (INTERNATIONAL) LTD
www.graham.sage24.com

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