11/10/2012

BBC To Put Freelancers On Payroll

In an effort to end controversy over it’s tax arrangements, some BBC freelancers could be offer staff contracts.

The BBC pays 1,500 on-air presenters through personal service companies, which allows the individuals to pay corporation tax at 21% rather than income tax at up to 50%.

The broadcaster was singled out for criticism by a committee of MPs last week after it concluded that the use of personal service company arrangements across the public sector "generates suspicions of complicity in tax avoidance".

Patten told a Broadcasting Press Guild lunch in London on Wednesday that the BBC had never "connived at tax dodging".

He said he would publish recommendations on the BBC's tax policies in the next fortnight after it receives the results of an independent audit by Deloitte.

He added: "Because of the concern about the issue the executive asked Deloitte to do a complete review of the way the arrangements work at present and to suggest additional steps which might be require to clear up any suspicions.

"It's undoubtedly the case that some freelancers will be put on the payroll. I am sure that we will also want more regular information going to the Revenue on service companies so that they can be absolutely clear about the tax liability. And we may wish, frankly, to go further than that. If we do ... I hope other public sector organisations will do the same."

(H)


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