Because of the short-term nature of work in film and TV it’s often impractical to pay employees through PAYE, where tax is deducted at source.
The seven-day rule means that you don’t need to make payments through PAYE to workers who work for less than one week.
It applies to workers in TV, film and production who are often employed for short periods of time and by a succession of different employers.
For the rule to apply workers must work for six consecutive days or less. This includes rest days and weekends, if they fall between the first and last days of the engagement.
So, if a worker is engaged for Wednesday, Thursday and Friday, the seven-day rule would apply. But if the worker was engaged for the following Monday and Tuesday they would exceed six days because of the weekend.
The rule applies only to Income Tax and not to National Insurance which will be taken in the normal way. The seven-day rule doesn’t change the contract. The worker will remain an employee even if they’re not taxed through PAYE. It’s up to the worker to pay tax through self-assessment.
When the rule doesn’t apply
The seven-day rule doesn’t apply if you know at the time of payment that the worker will be re-engaged and the total period of engagement (including rest days and weekends) is more than six days.
Neither does it apply if the worker is going to be engaged frequently or at regular intervals.
We run payrolls for many TV and film companies and understand the rules about workers and pay. Please get in touch if you would like to discuss a TV, film or production payroll with us.
Call 01373 228300 or email email@example.com