The law changed on 6th April 2014. You are now legally considered SELF-EMPLOYED for both Income Tax AND National Insurance.
2) What do I need to do?
You can get up to £1,000 each tax year in tax-free allowances for income from 6 April 2017 as such If your annual gross income is £1,000 or less, from one or more businesses you won’t have to tell HM Revenue and Customs (HMRC) or declare this income on a tax return.
If not already registered as self-employed8.you must register as self-employed. Even if you are already registered as self-employed you will still need to inform HMRC that you need to start paying Class 2 National Insurance contributions from 6th April 201
You may wish to contact our Casting Collective company accountant ‘Paul Cann’ who has agreed to assist any Supporting Artistes to complete a tax return and help you register for self-employment or register to pay Class 2 National Insurance contributions for a small fee. He has been working in this area for over 20 years. If you are interested in this please email Paul here. Please don’t email Casting Collective about this.
3) What if I have low earnings?
If you do not pay Class 2 National Insurance Contributions you may lose entitlement to employment and support allowance, basic state pension, bereavement benefits and maternity allowance.
4) Registering as self-employed:
You must if you are not already registered as self-employed advise HMRC that you have become self-employed within three months of your first filming job otherwise you may be liable to a penalty. This is done easily online via the HMRC website www.hmrc.gov.uk or by completing form CWF1. You will then be issued with a UTR (Unique Tax Reference) number.
5 What is a UTR and how do I get one?
The Unique Taxpayer Reference (UTR) is only issued by HM Revenue & Customs (HMRC) when you have registered for Self-Assessment. It is made up of 10 numbers, for example, 1234567890, and can be found on documentation issued by HMRC such as the Tax Return (SA100), a 'Notice to complete a Tax Return' (SA316) or a Statement of Account. Depending on the type of document issued the reference may be printed next to the headings 'Tax Reference', 'UTR' or 'Official Use'.
6) What's the difference between different types of National Insurance?
From 6 April 2014, earnings will be treated as self-employed income and will be subject to Class 2 or Class 4 National Insurance. You will no longer have a Class 1 National Insurance deduction from your payment and you will receive all payments without National Insurance deductions. You will be responsible for paying Class 2 National Insurance and where applicable Class 4 National Insurance which will be payable along with your self assessment income tax. This applies to all payments made to you after 6 April 2014.
7) How much National Insurance will I have to pay as self-employed?
- 2017/18 National Insurance Contributions:
- 2018/19 National Insurance Contributions:
8) How do I do a tax return?
The deadline for online submission of tax returns is 31st January in the year following the end of the tax year. For example, for the tax year ending 5 April 2018 (tax year 2017/18) online returns must be submitted (and any tax or national insurance contributions paid) by the 31 January 2019. If you submit a paper tax return, they must be filed with HM Revenue and Customs by the 31 October 2018.
9) Can you help me with my tax return?
The Casting Collective cannot offer you tax advice. However, as referred to in point 2 our accountant, Paul Cann has agreed to assist any Supporting Artistes to complete a tax return. If you are interested in this please email Paul here.10) Why do you still need my National Insurance number?
We have to make sure you are legally allowed to work in the UK and having a National Insurance number along with other documents helps us to check this.
11) Can I claim any benefits if I'm self-employed?
12) What if I am over state pension age?
When you reach retirement age there is no requirement to pay Class 2 National Insurance; however, if you are paying Class 4 National Insurance this still needs to be paid for the tax year you reach retirement age and you stop paying Class 4 contributions from the 5th April of that year.
13) More reading on National Insurance changes:https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/251925/National_insurance_and_self_employed_entertainers_-_response_document.pdf
14) I have another paid job in addition to working as an Extra:
Regardless of your other work, it is important that you register as self-employed if you think your gross earnings will be in excess of £1,000, for work as an extra within 3 months of your first job. Currently, your tax-free personal allowance is £11,850 (2018/19). If you earn more than this in your other job then any income earned as an extra will be taxable. If you fail to submit a tax return and account for any tax or national insurance due then you will be liable to penalties. Warning: HM Revenue and Customs can trace details of your earnings as an extra.
15) What about my Income support or Carers allowance?
If you receive income support you need to contact your local job centre plus office as soon as you have earned any money as an extra. If you receive Carers allowance you will need to contact the relevant office and inform them of your self-employed earnings and they will then make a decision on how much the claim will be reduced by.
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