Film and Television Companies Warned to Take Advantage of an
Opportunity to Change HMRC's Industry Guidelines
HM Revenue & Customs (HMRC) will soon be
revising the existing guidelines governing tax status and expenses
for self-employed workers in the media sector. This is an
opportunity to influence the process that will not happen again for
some time warns leading business and financial advisors,
Grant Thornton UK LLP.
As the landscape of film and television has
dramatically changed since the current guidelines were issued in
2003, the proposed revisions will see new roles, such as Digital
Set Designer, added to the self-employed list. It is also possible
that pre-existing roles will be removed from the guidelines,
altering the corresponding tax status.
Liz Brion, media partner at
Grant Thornton says; "Companies should look critically at the
revisions proposed by HMRC and be aware of the impact of any
changes to the tax status of the grades they regularly use. We
advise companies to take the opportunity to lobby HMRC in advance
of the changes coming into force, for the inclusion of additional
new grades or for any changes needed to the current qualifications
and descriptions that will affect a worker's tax status.
"A lot has changed in the media industry since
2003, particularly in film and television and therefore changes to
the guidelines have become necessary. We hope the revisions will
improve the way these guidelines are applied in practice," she
continued.
Although the specific date has yet to be
confirmed, HMRC plans to formally update the 2003 guidelines in the
spring (2010). Time is therefore running out for industry
bodies and companies, that have not already done so to petition for
the inclusion of any changes.
According to HMRC's system, in order to be
classed as self-employed, workers must adhere to overall
requirements together with those specific to the grade. These
include a contract that runs only for a one-off production such as
a feature film, single drama or documentary or a contract that
lasts for less than 9 months on a series or a specific
programme.
The new guidelines also include a proposed
change to expense payments. HMRC is proposing that the industry
rates the sector currently enjoys will be phased out. Instead, the
rates applicable to all employers regardless of industry will be
used unless a company has negotiated a specific rate.
Details of the expense rates and a breakdown
of all roles currently exempt from PAYE can be found on HMRC's
Website.
ENDS
For further information, please contact:
Nicola Daley, Grant Thornton Press Office: 020 7728 2244. email:
nicola.daley@gtuk.com