BBC put star presenters on an ‘elegant form of zero hours pay’, court told
THE BBC employed household names on “an elegant form of zero hours contract” a tribunal heard yesterday, as three BBC news presenters appealed against a £920,000 tax bill.
Joanna Gosling, David Eades and Tim Willcox were “pushed by the BBC” into setting up personal service companies, an arrangement that allowed the corporation to avoid paying employers’ National Insurance contributions. But the contracts came with no benefits and amounted to “no work, no pay”, the court heard.
When Ms Gosling became pregnant, the BBC suspended her contract and made clear “it was up to the BBC to decide if and when it would have her back”, said Jonathan Peacock QC, acting for the presenters. She took two months’ maternity leave with her first child and three months with her second, all of it unpaid.
Mr Willcox presented from disaster zones but the BBC did not provide his insurance. “If you are caught in a typhoon and you are injured you may hope the BBC send you a helicopter, but they have no obligation to do so,” Mr Peacock said.
HMRC is arguing that the presenters were effectively employees of the BBC and should have paid more tax. It is claiming £920,000 in total from the three presenters, of which £609,000 has already been paid. Gosling, Eades and Willcox, who have all worked for the BBC’S rolling news services, argue they were freelancers who received none of the benefits afforded to employees.
The appeal is a test case, with more than 100 other BBC presenters facing similar tax bills.
Opening proceedings at the High Court in London, Mr Peacock said: “It is important to see the current predicament of these presenters. They were pushed by the BBC into contracting through personal service companies. The risk does not appear to have been explained to them. They were henceforth treated as freelancers and not as staff so they got none of the benefits such as sick pay, holiday pay, maternity leave, insurance or pension. This of course suited the BBC, which did not have to pay benefits.
“It is, on close analysis, an elegant form of zero hours contract. What is expected from the presenter is commitment. The obligations on behalf of the BBC are only to pay when programmes are presented.”
All three presenters were contracted for a minimum number of days per year. While the BBC had “first call” on their services, they were able to work for other employers.
Ms Gosling joined in 1999 and, four years later, was told to set up a personal service company. She was accidentally copied in to an internal BBC email “which recorded both the pressure put on Ms Gosling to set up a company and also what treatment might be offered to her if she refused”, Mr Peacock said. The email said that unless Ms Gosling set up a company she would be offered a job as producer, not presenter, for a lower fee. In 2004, she was pregnant with her first child, and in 2007 with her second.
Mr Peacock said: “Ms Gosling didn’t work during that period and was not paid. It was made clear to her at the time, it was up to the BBC to decide if and when it would have her back. All these agreements work the same way: no work, no pay.” The case continues.