Additional information

Summary

  • What contract is best for the teacher?
  • New Rules as of April 2012: Class 1 National Insurance
  • Changes to Workplace pensions law

What contract is best for the teacher?

This will depend on their circumstance and objectives. Self-employed contracts provide flexibility and may have tax advantages. Employment contracts provide important statutory rights and there will be an implied term of mutual trust and confidence.


New Rules as of April 2012: Class 1 National Insurance

The social security regulations in relation to tutors/lecturers in institutions have changed in respect to those that teach traditional curriculum subjects with effect from 6 April 2012 (i.e. from the current tax year 2012/13 onwards).

Prior to this date, if an individual acted as a tutor teaching music in an educational institution, then the social security regulations from 1978 stated that Class 1 National Insurance Contributions (NIC) were due if the individual in question was engaged to lecture for three days or more in any three consecutive months, regardless of their employment/self-employment status. 

These regulations have now been repealed and each case is to be considered on its own facts to determine whether an individual may be classed as self-employed, regardless of the number of days they are engaged in any period.

Individuals will need to consider their circumstances before being confident that they are self-employed and the usual factors (as previously mentioned) will need to be considered to determine the status.

More information

http://www.hmrc.gov.uk/manuals/esmmanual/esm4502.htm
http://www.hmrc.gov.uk/manuals/esmmanual/esm4503.htm
http://www.hmrc.gov.uk/manuals/nimmanual/NIM24620.htm


Changes to Workplace pensions law

Workplace pensions law has changed. Every employer now has new legal duties to help their workers in the UK save for retirement.

More information

http://www.thepensionsregulator.gov.uk/automatic-enrolment.aspx