Do Production Managers in Television Freelance or PAYE?
The television industry thrives on a blend of skilled professionals, both behind and in front of the camera. But when it comes to production managers, a common question arises: are they typically freelancers or PAYE (Pay As You Earn) employees? This article delves into the complexities of employment status for TV production managers in the UK.
Navigating the Freelance and PAYE Landscape
The UK’s HM Revenue and Customs (HMRC) provides guidance on employment status within the television and film industry. While certain roles readily fall under self-employment, the classification of production managers often requires a more nuanced approach. The high turnover rate within the industry further contributes to this ambiguity.
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Specific Roles and Criteria for Self-Employment
HMRC maintains a list of roles within the industry where self-employed status is generally accepted, given that specific criteria are met. This list, while not exhaustive, offers a starting point for determining the status of a production manager. If the role isn’t listed or the criteria aren’t fulfilled, a more detailed assessment is needed using general employment status rules.
To qualify as self-employed in a listed role, a production manager must typically meet criteria outlined in Appendix 1 of the HMRC’s Employment Status Manual (ESM). This often includes engaging on a “specific production” for a “finite period,” with re-engagements treated as “discrete engagements.”
Defining Key Terms for Employment Status
Understanding the HMRC’s terminology is crucial for accurate classification. “Specific production” refers to projects with a defined scope and duration, like a film, series, or commercial. “Finite period” implies a contract tied to deliverables, not a set timeframe. A “discrete engagement” indicates a genuinely separate contract without a long-term commitment.
Re-engagements and Overarching Agreements
Re-hiring for subsequent productions can be complex. To be considered discrete engagements, they must be genuinely separate agreements, not part of a broader, long-term contract. Factors like time between engagements, external factors influencing re-hiring, and competitive retendering processes can suggest separate engagements.
Rostering and its Implications
The practice of “rostering,” where companies maintain a list of contractors for future projects, doesn’t necessarily preclude self-employment. As long as each assignment from the roster represents a separate engagement, self-employed status can be maintained.
Determining Employment Status: The Bigger Picture
Determining whether a production manager is freelance or PAYE requires careful consideration of individual circumstances and adherence to HMRC guidelines. When specific criteria aren’t met, applying general employment status rules is essential. Factors like control, substitution, financial risk, and mutuality of obligation play a role in this broader assessment. Always consult the latest HMRC guidance for the most up-to-date information.
