What is a Lorimer letter?

What is a Lorimer letter?

A Lorimer letter is essentially ‘proof’ from HMRC that a contractor is considered as being self-employed.

It was introduced following the 1993 Hall vs Lorimer case. Ian Lorimer was a self-employed TV technician working for numerous production companies on brief jobs.

However, tax inspector Brian Hall claimed that Lorimer wasn’t self-employed due to him using some of his client’s equipment, saying that this meant he failed one of the HMRC tests for self-employment. He also argued that it was the production company clients that were dictating when and where he would work.

Despite this, Lorimer won his case and it was ruled that he was in fact running a self-employed business.

What are the benefits of having a Lorimer letter?

Having a Lorimer letter means that you won’t need to worry about a client classing you as being employed and therefore taxing you the same as an employed worker.

Those who are familiar with the IR35 legislation will know only too well the confusion and issues that can come from a client being unsure of your employment status, so a Lorimer letter can help to provide assurance for both the hirer and the contractor.

There’s also the fact that a Lorimer letter can be taken with you from job to job, unlike IR35, which can have you falling under a different status with each client.

For more information on IR35, read our helpful guides: What is IR35? and IR35 and sole traders.

Can anyone apply for a Lorimer letter?

Lorimer letters are for those who are either working behind-camera or have a production-based role.

Examples of behind-camera roles in the media sector, as described by HMRC, include camera operators, producers, writers, directors, gaffers, carpenters, electricians and stage managers.

The GOV.UK website states that ‘the list of roles is not exhaustive. Where a role is not listed, or the criteria is not met a more detailed exercise is required to consider the case applying general status rules.’ All of this information can be found on GOV.UK or you can speak to your accountant for more help.

How do I get a Lorimer letter?

To apply for a Lorimer letter, you’ll need to request a questionnaire and an engagement history spreadsheet to fill out and return.

You can receive these by contacting the Film Production Unit at HMRC at:
a.filmproductionunitmailbox@hmrc.gov.uk or phone them on 0300 123 2326.

The questionnaire will ask for information such as your job title, NI number and your business set-up, and if you have your own work kit, you’ll need to list and value each of these items.

For the spreadsheet, you will need to list every job you’ve been hired for over the last 12 months.

Each Lorimer letter will last for one year so you’ll need to reapply every 12 months and you shouldn’t have to answer all questions as in-depth each time.

Hopefully this page has answered some of your questions, but if you have any further queries, our team of experts are available to help, so give us a call on 01442 795 100 or email sophie.lewis@dolanaccountancy.com.