An LP10 letter is a letter sent by HMRC that instructs your short-term employer or contractor not to deduct tax from your earnings. It is used by freelancers and is common if you work in the film and television production space, especially if you work behind the camera.
Here are a few things for you to bear in mind:
- It is also referred to as a Lorimer letter based on the Hall v Lorimer case in 1993
- You apply it to work that lasts 10 days or less
- You need evidence of multiple examples of these short-term jobs to apply
- It helps your employer to clarify your employment status (employed or self-employed)
- It assures your hiring company that you can be paid gross income
How do I apply for an LP10 letter?
To apply, you can get in contact with HMRC who can issue you with a letter that you will show to short-term employers.
- You’ll need to show 12 months of employment history
- The letter is valid for 3 years, after which you’ll need to reapply
- Contact National Insurance: general enquiries
You can call them on 0300 200 3500.
Be aware though that with updates to IR35 that will come into force in April 2021, this process may change. Keep an eye on the HMRC website for updates.