10th July 2009 Legal Zone

In certain circumstances a freelancer may be regarded as self-employed, even though each of his engagements, viewed in isolation, would suggest that he was an employee. This is particularly important if you want to work with the BBC and you do one of the jobs that the inland revenue does not consider to be a freelance job and you want to be paid gross.

In certain circumstances a freelancer may be regarded as self-employed, even though each of his engagements, viewed in isolation, would suggest that he was an employee. This is particularly important if you want to work with the BBC and you are doing one of the jobs that the inland revenue does not consider to be a freelance job (like anything with the the word assistant in the title).

These cases are identified by North East Metropolitan Area, Film Industry Unit of the Inland Revenue or in the case of engagements in TV the Chapel Wharf Area TV Unit. These departments issue letters of authority that you can give to an employer so that they will pay you gross.


There are two kinds of Letters of Authority:

SPECIFIC LETTERS - Specific letters are occasionally issued to a small number of individuals working in a grade not normally recognised as self employed in accordance with the published list of self employed grades. In those cases the worker has successfully demonstrated to the Inland Revenue that self-employed status may be granted for this particular engagement only.

LORIMER LETTERS - have been issued to all workers who, although not usually working in a grade listed, have satisfactorily demonstrated that their overall pattern of activity amounts to self-employment. In these cases, the letter authorises employers to make gross payment in respect of payments for short engagements. In this context, ‘short’ means ten days or less. Employers will telephone the contact number shown in the letter if the engagement is expected to last for more than ten days, or if there is an arrangement for the worker to be engaged regularly for short periods.

When telephoning, employers will need to provide your full name and National Insurance number and the unique serial number shown on the letter of authority, together with brief details of the engagement. The Inland Revenue will either authorise the use of gross payment or will give additional advice on the operation of PAYE. Workers who dispute the operation of PAYE should refer to North East Metropolitan Area, Film Industry Unit or Chapel Wharf Area TV Unit if the engager is a television freelancer.

Employers will only accept letters that contain a valid expiry date. ONLY North East Metropolitan Area Film Industry Unit and Chapel Wharf Area TV Unit issue valid Letters of Authority. Letters from any other Tax Office or from Accountants will be ignored; as will Schedule D or any other Tax Reference Numbers provided by you.

For more information call 0845 303 3535 or 0161 261 3255 or 3254 or 3691