BBC may pay star presenters’ tax bills after HMRC mix-up

THE BBC has made hardship payments to presenters facing large tax bills after they were forced to form companies to be paid, MPS were told yesterday.

Anne Bulford, the deputy director general, told the Commons public accounts committee the BBC had given loans and advances to a number of people facing financial difficulty after their tax arrangements changed. “We think it is the right thing to do,” she said.

The presenters had to form companies so they could be treated as freelancers, but moved last year to a PAYE system. “For some people, especially some lower paid presenters, that represents a very big challenge because the cash flow is different,” Ms Bulford said.

The disclosure came after another Commons committee was told last month how presenters were pushed by the BBC into setting up personal service companies, leaving them without holiday and sick pay, and pension contributions. They subsequently faced large bills for unpaid taxes when the arrangements fell foul of the taxman.

Lord Hall, BBC director general, said the problems, affecting mainly radio and news presenters, were in part the consequence of a series of changes by HMRC. “This has caused a great deal of anger among our frontline presenters, mainly in radio and in news,” he said.

“In some cases it has caused hardship. If there are hardship cases we have made it clear we want to deal with those as a priority. My sympathies are with the people on the raw end of this.”

Ms Bulford did not rule out the prospect that the BBC would end up paying the back taxes of some affected staff.

She also denied allegations in the Daily Mail that Capita, the firm collecting TV licence fees, was offering cash incentives to maximise prosecutions.