Posted: 08 March 2010
Issue: Vol 165, Issue 4246
Categories: News, Update, IT & NIC

No contractual obligation in some cases

HMRC have issued supplementary guidance on the taxation of stage managers.

An agreement was reached in 1994 between the Revenue, Equity and the Theatre’s National Committee that stage managers, deputy stage managers and assistant stage managers, who enjoyed similar terms of engagement to actors and who carried out their trade in the same way, would be subject to the guidance on the tax treatment of theatrical performers/artists, published on 31 August 1994.

This was on the understanding that, in addition to their normal duties, there was an expectation that stage management personnel at every level would, where required, undertake to perform understudy duties in rehearsals or appear on stage in costume or in blacks.

Where the relevant conditions were satisfied stage management would be accepted as falling within the McCowen & West criteria, and, therefore, self employed for tax purposes but normally liable to Class 1 National Insurance.

However, HMRC have found that in some cases there was no contractual obligation or any expectation for stage managers to appear in productions in practice.

At a recent meeting with Equity, the various stage management roles in theatre productions were discussed. This has led to supplementary guidance being issued

Stage management will continue to be considered as entertainers in accordance with tax and National Insurance legislation where they are required to undertake stage management duties as a company and stage manager (dual role), stage manager, deputy stage manager or assistant stage manager, in accordance with a standard Equity contract.

An engagement solely as a company manager will not be considered an entertainer and, therefore, will be subject to the normal status rules. Any non-standard contracts will be considered on their own merits.

The guidance notes for theatrical performer/artists only apply where the stage manager is engaged for no longer than the run of a production and do not apply to permanent (or long term) engagements.

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