How we could foot stars’ HMRC bills
THE BBC must compensate presenters hit with huge tax demands after they ‘coerced’ many into being paid through private companies.
More than 6,000 staff were employed off-payroll from 2007 to 2012, meaning they could cut their tax bills by thousands of pounds.
On the other hand, by agreeing to set up ‘personal service companies’ they lost benefits such as sick leave, holidays and maternity pay.
The Corporation was also able to reduce the amount it paid in National Insurance contributions because so many of its staff were employed through PSCs.
A number of BBC presenters told the Commons culture committee they were given no choice about setting up these companies. Others said they had suffered ‘life-altering levels of stress and worry’.
HMRC is now going through the tax affairs of staff to see if they owe back tax. Some could be hit with bills of hundreds of thousands of pounds.
In one case, regional presenter Christa Ackroyd has already been ordered to pay almost £420,000 in unpaid tax after she was ‘encouraged’ to set up a PSC. The broadcaster, 61, was the anchor of BBC Look North in Yorkshire for 12 years until inquiries into her tax affairs led to her being taken off air in 2013.
In their report MPs said the BBC should compensate those hit with high tax demands. They said: ‘We have seen strong evidence that the BBC made presenters feel that a PSC was a mandatory condition of work.
‘In cases where it is clear that people were coerced into setting up a PSC in order to carry on working for the BBC, and face substantial claims for outstanding tax as a result, then the BBC should offer those individuals compensation for their losses.’
One presenter said the way they were employed had caused ‘lifealtering levels of stress and worry which affect me daily’.
The report found the BBC had effectively coerced many staff into setting up PSCs. One presenter said: ‘I was forced off a BBC staff contract in order to be allowed to pursue a presenting career.’