BBC faces huge bill over stars they ‘forced’ to set up firms to cut tax

THE BBC could end up footing massive unpaid tax bills for presenters who were ‘forced’ to come off the staff payroll and funnel wages through their own private companies, a senior MP warned.

Last month, former BBC star Christa Ackroyd lost a five-year battle with HM Revenue & Customs over a £419,000 tax demand for earnings that had gone through a socalled personal service company.

It meant the Look North anchor was treated by the BBC as self-employed rather than a member of staff, and paid a much lower rate of tax for years.

The tax tribunal ruled that Miss Ackroyd should have paid the same level of tax as a BBC employee and was liable for the bill. HMRC said, however, that she should not be criticised as she had been encouraged by

By Laura Lambert TV and Radio Reporter

the BBC to claim her salary through a personal service company.

Damian Collins MP, chairman of the digital, culture, media and sport select committee, is currently exploring who is liable for the tax bills. He suggested the Corporation could have to pay if presenters set up such companies ‘against their will’ and now face bills for hundreds of thousands of pounds of unpaid taxes ‘through no fault of their own’.

More than 100 past and present BBC stars are currently being investigated for potential tax avoidance by using the scheme, and could face hefty bills if it is ruled they have been paying the wrong rate of tax.

Speaking at a Broadcasting Press Guild event in London yesterday, Mr Collins said: ‘We’d be interested in looking at this issue of personal service companies and to what extent people were compelled to set them up when they didn’t want to.

‘Of course there may be some people at the BBC who did want to work in that way, and it suited them, but if people were saying they were forced to – and there now seems to be a big liability for people that did – that is potentially a real scandal and needs to be looked at.’

A BBC spokesman said last night: ‘Until last year it was the responsibility of individuals engaged through personal service companies to ensure they paid the correct tax, and it was made clear they should take advice from a professional financial adviser to confirm their selfemployed status.’