The Staggers

The New Statesman’s rolling politics blog

BBC to give up its "tax-avoiding" freelancers

They'll become staff.

By New Statesman Published 07 November 2012 19:14

BBC presenter Fiona Bruce, who was named by the Telegraph. Photograph: Getty Images

More than 100 BBC presenters will have to give up freelance contracts that could help them cut their tax bills, according to reports from the Telegraph.

The broadcaster has allowed more than 6,000 employees to be paid as though they were “personal service companies”, meaning they can be taxed more lightly, the newspaper reports. These freelancers include Fiona Bruce, Gavin Esler and Emily Maitlis.

After a review of its freelance arrangements by Deloitte, the BBC said today that it could move 131 people onto staff contracts after their freelance deals have expired.

Hovever, it added that there was "no evidence" that it had helped aid tax avoidance.

Earlier this year Newsnight's Jeremy Paxman said that the BBC had asked him to set up a private company in order to receive payment.

Tags: Tax

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7 comments

Thu, 2012-11-08 17:53 — Mbrecker (not verified)

They're asking freelancers to become regular staff. Then they let the top people like Paxman do the complete opposite, when everybody knows that "personal service" contracts are to lower your tax rate.

This is still the global standard:
Russia. Vladimir Pozner (Channel 1)
Ireland. Pat Kelly (RTE)
Every major chat show presenter in the States (and many network news presenters).
As a content provider, this lowers your tax rate and potentially allows a greater share of syndication revenue (assuming that you produce enough episodes for a syndication package to be sold).

Now because of the global depression, will more countries do this?

Thu, 2012-11-08 09:53 — Indu Pendent

The BBC's treatment does not make sense.

Under the HMRC rules employers either are required to pay the employer's NI or they dont. "onto staff contracts after their freelance deals have expired" its irrelevant whether they are on freelance deals as to whether the NI should be paid. The BBC are saying they are involved in tax evasion by not paying the NI when they know they should be doing.

Wed, 2012-11-07 23:04 — Hugh C Markey (not verified)

BBC - British Broadcasting Corporation. No taxation without representation! Some of these blighters have even got the vote.
Democracy! Let's not forget the Ancient Greeks had slaves doing the menial(hard) work. The Spartans were not an aberration.

Persian Gold

Wed, 2012-11-07 20:37 — Barrie J (not verified)

The facts outlined in the story contradict the headline, only a small percentage will be required to amend their 'contracts'. For the BBC and the rest it's business as usual.
Only poor people pay taxes.

Wed, 2012-11-07 20:26 — Lucidus (not verified)

While they're at it, perhaps they could look at the overall rates as well. Here's some 2006 figures:

Terry Wogan (Radio 2) - £800,000
Chris Moyles (Radio 1)- £630,000
Chris Evans (Radio 2) - £540,000
Jonathan Ross (Radio 2) - £530,000
Steve Wright (Radio 2) - £440,000
Jo Whiley (Radio 1) - £250,000
Ken Bruce (Radio 2) - £194,000
Jeremy Paxman: £240,000 for University Challenge

news.bbc.co.uk/1/hi/entertainment/4919678.stm