To avoid PAYE and Class 1 NICs liability many film and video
workers in ‘employed’ grades have set up limited
companies. Normally the worker is the majority shareholder and a
director. It is usually alleged that the service company supplies
the services of the individual to a film or video production
company.
An examination of many such cases has shown that such
arrangements often fail. The worker remains an employee of the
production company. Tell the Film Industry Unit about any service
companies of this kind that you find.
Where the worker is not an employee of the production
company, you should consider whether the ‘service
company’ legislation applies (see
ESM3000 onwards).
