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BBC criticised once again for possible tax avoidance

Once again the BBC has been subject to criticism for possible tax avoidance by allowing presenters to use personal service companies, recent reports say.

The public broadcasting firm has come under severe fire over the summer months for encouraging many of its presenters to use these personal service companies, ostensibly in order to reduce their tax burden by treating employees as contractors instead. Now, the Beeb has been criticised even further for dragging their feet on resolving the issue.

Tim Davie, acting director general of the broadcaster, has addressed the criticism in a letter sent to Labour MP David Winnick, remarking that the BBC cannot simply terminate an existing contract with any of its presenters using a personal service company without violating the law. Instead, the corporation has no choice but to wait out these contracts before it can make any change to the employment status of these presenters.

Mr Davie said in the letter that the broadcaster will begin to implement each and every one of these changes as soon as possible, but there is no way the BBC can violate the terms of these contracts legally by terminating them early. Instead, as each contract expires, the individual will be m oved from a personal service company to a staff or self-employed position as appropriate.

Mr Winnick was less than sympathetic upon receipt of the letter from Mr Davie. In fact, the Labour MP went on to respond that the BBC was showing gross insensitivity to the concern of government ministers regarding possible tax avoidance issues.

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