NI Scheme for Lecturers and Teachers RegulationsTuesday, March 27th, 2012
In certain circumstances, the Social Security (Categorisation of Earners) Regulations 1978 and the Social Security (Categorisation of Earners) (Northern Ireland) Regulations 1978 requires that a self-employed lecturer, teacher, instructor or similar be treated as an employee for NICs purposes.
As we have discussed before, this created an anomaly between the tax and NICs treatment for the same payment. The responses to a recent consultation overwhelmingly supported the disapplication (removal) of the relevant sections within the main Regulations.
The Social Security (Categorisation of Earners) (Amendment) Regulations 2012 makes the above disapplication and comes into force on 06 April 2012.
As we have said before, this a welcome simplification of a confusing set of rules within the Regulations. Employers in educational establishments can now close down any PAYE schemes where the sole purpose was to cater for the requirements under the 1978 Regulations.
The employee should be advised that any payment made should be considered for Class 2 / 4 NICs.
- Legislation Website – The Social Security (Categorisation of Earnings) (Amendment) Regulations 2012
- HMRC – Summary of Responses: Categorisation of Earners Regulations 1978
- Payroll Help 14 October 2011 – Employment Status of Lecturers, Teachers and Instructors
- Payroll Help 18 February 2012 – Complicated and Confusing NICs Treatment to be Repealed