Most Equity members are taxed as self-employed. However, many of our members are categorised as employed earners for National Insurance Contribution (NIC) purposes. Being self-employed for tax purposes means business expenses can be claimed against tax, whilst paying employees' NICs provides added social security and employment protection. This ‘dual' status can be extremely confusing so here is some information to help you understand both your status and your liabilities.
When you finish training and are starting work as a professional artist, you need to register as self-employed for tax purposes. You can do this by calling the HMRC (Revenue & Customs) Helpline for the Newly Self-Employed on 08459 15 45 15.
Alternatively, you can contact your nearest Revenue & Customs Inquiry office and ask for booklet “Thinking of working for yourself?” which is labelled PSE1. This booklet contains two forms. Form CWF1 should be completed and sent to the National Insurance Contributions Office (NICO) which will pass your information to the self-employment section of HMRC. You can also register by completing form CWF1 online at www.hmrc.gov.uk
Read the full published article in issue 2 of The Drama Student Magazine.