Categorized | news

Auntie Beeb puts the screws to its stars over tax dodge

Apparently the BBC has had it with the whole controversy surrounding stars being paid through personal service companies as a tax dodge by slashing salaries.

The Beeb has decided to start handing out pay cuts left and right to any of its stars that have received payment through personal service companies in the past. It’s a tactic by the broadcaster to bring contracted television and radio personalities into the fold as employees in order to stamp out the highly popular tax dodge, especially after the BBC has been raked over the coals repeatedly for its lax approach to the number of freelancers and contractors it employed.

To be honest there was – and still is – a serious problem with paying contractors through personal service companies, as it means a given worker ends up only paying corporation tax instead of income tax. For low income earners this isn’t really an issue, but when you earn enough to end up paying the higher 45 per cent tax rate and use a personal service company to pay only 23 per cent, it’s a pretty egregious move.

Of course, there’s nothing illegal about doing things this way. Immoral? Well that’s not for me to decide. All I know is that it truly takes the mickey out of Her Majesty’s Revenue & Customs that it’s missing out on so much revenue, and the taxman has started to lean on the BBC quite heavily to get more of its presenters as employees instead of contractors.

Of course the transition to a full employee does bring its fair share of benefits for presenters. Unfortunately to afford all these new employees, Auntie Beeb is slashing salaries by as much as 25 per cent for some former contractors, and it’s created quite a row between the BBC and all the agents for these stars.

On the one hand I can see the problem clearly, as a massive pay cut like that is more than a little hard to swallow. Then again, shedloads of these stars have been living high on the hog for several years by only having to pay corporation tax, so in the end my sympathy doesn’t really run deep. These top-tier presenters get paid whole lot more than most of us do, so I’m a little gleeful to see them getting cut down to size a bit. I suppose I’m just a terrible person, eh?

Be Sociable, Share!

Leave a Reply

You must be logged in to post a comment.

  • Switch Accountants for FREE

    Switch Accountants for FREEAt K&B Accountancy Group we have introduced a simple and straightforward approach to changing accountants. We’re offering contractors, consultants and freelancers the opportunity to switch to K&B Accountancy Group for FREE without the need to pay for any ‘catch up’ or retrospective accountancy fees for the previous year’s accounts and corporation tax return* *T&Cs apply

our top 5 twitter posts


contractor accountants


twitter Join the conversation
Free Telephone Advice