The government has offered grants to help workers during the Covid-19 Crisis, but the qualifying restrictions mean that film crews are unlikely to benefit.
There is a hard cut off point for those freelancers whose average annual profits total more than £50,000. This means that if you earn £49,999 you can claim £2500 per month. Those earning £50,001 get nothing (though they can possibly claim universal benefits, and good luck with that).
This “assistance” is not going to benefit many in the UK film industry.
Firstly, the revenue say that you can only be freelance (Schedule D) if you are head of a department. HoD’s earn over £50K, because of the responsibility they take on and their experience.
Secondly, most crew are PAYE, made to pay tax at a higher rate, simply because the revenue has for many years not recognised that film crews are in fact, all freelance. They work for single purpose companies, set up to handle production then dissolved as soon as the shoot is wrapped.
Thirdly, those crew that are neither Schedule D or PAYE are paid through a personal limited company, the revenue has been trying to close down this loophole for years, because it allows these wise folks to pay significantly less tax. Needless to say, company directors getting most of their pay via dividends will get nothing from any government grants.
However, unfortunately, PAYE crew members will still not get a grant. The way the government has structured PAYE grants is that the company paying the tax. These companies nust furlough their staff, then pay 80% of the wages as normal, claiming this back in June. Most productions wrapped in November and December, (our industry is predominantly seasonal). Those that have recently got underway have simply closed down paying 2 weeks notice. All this means that most film crews will be left with no government assistance to pay bills, rent or mortgage, council tax, food or any other expenses.
Its about time the Inland Revenue allowed every member of the film crew to be schedule D. After all, they have no job security, and no protection under employment law. The PAYE system is for permanent employees and should not be used for any workers under temporary contracts