TV production companies face rise in NICs

Changes to actors' national insurance liability could place a financial burden on television production companies, Grant Thornton said.

Grant Thornton and the Producers Alliance for Cinema and Television (PACT) - the trade association for TV, film and web production companies - are calling for the taxman to give clearer guidance on actors' National Insurance contributions (NICs). They also want production companies to tell them about their comments and experiences on this tax matter.

The tax treatment of production companies has been under the spotlight since 2010 when ITV lost a tax tribunal with the HMRC (ITV Services Limited and the commissioners for HMRC, TC 00836) over whether the actors it hires are employees.

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Comments

IR35 applies to 'the group of actors known as “key talent” ' ?

dstickl | | Permalink

Surely IR35 applies to 'the group of actors known as “key talent” ' , doesn't it, IF the actors are working through limited companies, because they're obviously offering personal service that can't be substituted, and they're controlled under the direction of Producers and Directors etc?

IF this is the case, THEN would any brave member of 'the group of actors known as “key talent” '  care to support my suggested narrowing of the focus of that "Fiscal Horror" of IR35, in next month's March 2012 Budget, of: Replace the words "by 5%" in ITEPA 2003 Part 2 Chapter 8 Section 54 (1) Step 1 with the following: "by a monetary amount that is the greater of either (a) the VAT registration threshold for a worker who did not work for a period of at least three hundred and sixty six calendar days after the date his or her previous contract for service ended or (b) five per cent for all other workers." ?

After all, once we get Joanna Lumley and/or her delightful colleagues on board, success of sensible change to IR35 should be assured !!

 

Note to the "Sun on Sunday": This would make a great story for your launch, involving as it does:

* Stars from stage and screen!

* The Rule of Law allegedly flouted at and from the top of HMG!

* Workers allegedly exploited due to the actions of big business in allegedly brushing off the original intent of F2M!

* Politicians in the Coalition continuing to support Labour's "Fiscal Horror" of IR35 in February 2012 - even though the Conservative Party and the LibDem Party had previously issued Manifestos to deal with IR35! 

* The run up to March Budget 2012!

 

What more does a Red Top Editor want??