The end of the Social Security (Categorisation of Earners) Regulations 1978 as it relates to Lecturers, Teachers, Instructors or those in a similar capacity?
by Terry Welti - 12 October 2011
On Friday 7 October, HM Revenue and Customs published a Consultation document, the central proposal of which was the repeal of the section of the regulation relating to lecturers, teachers, instructors or those in a similar capacity.
The previous day, trainers and instructors seeking guidance from the HMRC website in respect of this regulation would have found, in the Employment Status Manual, under ESM4503:
‘HMRC are withdrawing the guidance until further notice.
‘With immediate effect vocational training providers should not consider or apply the regulations.’(!!)
These two acts by HMRC are the culmination of more than five years effort, reasoned argument, and heated debate, led by the first aid training industry against claims made by HMRC. These claims were both extremely damaging to individuals and training organisations who were singled out by compliance checks, and to the whole industry who were placed in a position of not knowing how, when or where to apply the regulation, only that HMRC insisted they should apply it, even though the guidance – the original ESM4503 – stated from 2004 until the revision in 2009, that vocational (work-related) training courses were not to be included.
The arguments have continued through HMRC changing its mind on what courses should be included under the regulation, through HMRC avoiding a hearing in front of the General Commissioners which could well have brought clarity to the subject, through a dramatic change to the guidance notes leaving everyone (even HMRC) more confused than ever, through the publication and subsequent abandoning of a consultation document on the regulation, and through appeals to the Prime Minister and other Ministers.
Finally in July 2011, the Exchequer Secretary, Mr David Gauke, agreed to meet representatives of FACT and AoFA. At that meeting they were successful in securing commitment from Mr Gauke to bring about a resolution to the matter.
The withdrawal of the guidance and the publication of the Consultation Document are the direct result of this commitment. They do not however end the matter, the Consultation Document is exactly what it says and for the proposal to repeal the legislation to be enacted, sufficient interested parties must respond positively. It is therefore vital that every instructor, every training organisation and all other interested parties respond before the closing date of 6 January 2012. Only by you all doing so can we be sure that this piece of legislation, that has so damaged our industry over the past six years will be consigned to the scrap heap, where it can cause no further trouble.