BBC pays staff through Personal Service Companies
Discussion
This is back in the headlines with a lot of the BBC "stars" - claiming they were forced by the BBC to work this way - of course they are all fully entitled to pay the full amount to themselves as salary from their PSC and therefore the net tax/NI loss to the revenue is minimal (there would be some costs to running the PSC but not more than £1K or so pa).
What they are not saying of course is if they have or have they taken advantage of the opportunity to minimise their tax?
I wonder....
What they are not saying of course is if they have or have they taken advantage of the opportunity to minimise their tax?
I wonder....
Provided they fall into line with IR35 (on the basis they're PS companies) then I can't see the problem, the BBC have been highlighted because they're high profile, but more and more professional people are working this way as there is more interim than permanent work around these days.
Blue62 said:
....the BBC have been highlighted because they're high profile.....
...and also were at the forefront of the moral outrage when this last hit the headlines.I seem to recall Paxman looking like someone had put a cat turd on his coffee when Newsnight were covering the brouhaha about this last time, and a studio guest pointed out in passing that the practice was also rumoured to be widespread at the BBC.
Ozzie Osmond said:
The real point here is very simple,
Good point Ozzie, but to some extent the market is pushing the people at the top in that direction, plenty of companies would rather hire interims for a host of reasons, to a large extent it's market driven.- People at the bottom of our society avoid tax by working for cash etc.
- People at the top of our society avoid tax by the use of service companies.
- The mugs in the middle get nailed for full NI and PAYE.
Blue62 said:
Provided they fall into line with IR35 (on the basis they're PS companies) then I can't see the problem, the BBC have been highlighted because they're high profile
Because the BBC led the charge against of moral outrage that people could be avoiding paying tax in the first place! And then are discovered to also be leading the way to ensuring that they employ next to no one to save themselves a bundle in Employers NI!Look up the word "hypocrite"!
tinman0 said:
Because the BBC led the charge against of moral outrage that people could be avoiding paying tax in the first place! And then are discovered to also be leading the way to ensuring that they employ next to no one to save themselves a bundle in Employers NI!
Look up the word "hypocrite"!
In the media sector this is common practice, not confined to the BBC at all. I take your point on the fact thsat they covered the story, but I think you'd be jumping up and down even more if they swept it under the carpet (as they appear to have done with Jimmy Savile). Interestingly (or not) the introduction of IR35 was prompted by the number of train drivers operating under PS companies following the privatisation of the railways. Look up the word "hypocrite"!
FWDiane said:
if all these contractors were to be classed as staff, who would be left with paying the employers NI bill? |The BBC, and so likely us. I don't fancy a 13.8% increase in the cost of my tv license
The other option migh be to pay them less but employed on a permanent basis.Serendipity72 said:
Shameful.
The BBC talk as though they occupy the moral high ground. Obviously they don't.
This is just like champagne socialism: "do what I say, not what I do".
Like when David Cameron described Jimmy Carr's tax avoidance as morally repugnant while Gary Barlow - who campaigned for Cameron in 2010 - was left unmentioned?The BBC talk as though they occupy the moral high ground. Obviously they don't.
This is just like champagne socialism: "do what I say, not what I do".
martin84 said:
Serendipity72 said:
Shameful.
The BBC talk as though they occupy the moral high ground. Obviously they don't.
This is just like champagne socialism: "do what I say, not what I do".
Like when David Cameron described Jimmy Carr's tax avoidance as morally repugnant while Gary Barlow - who campaigned for Cameron in 2010 - was left unmentioned?The BBC talk as though they occupy the moral high ground. Obviously they don't.
This is just like champagne socialism: "do what I say, not what I do".
Ozzie Osmond said:
The real point here is very simple,
So a freelance cameraman who might work for the BBC, and a variety of other production houses over the course of a year and earn maybe £20k per annum is oh-so wicked for operating as a company? Oh the shame on them.- People at the bottom of our society avoid tax by working for cash etc.
- People at the top of our society avoid tax by the use of service companies.
- The mugs in the middle get nailed for full NI and PAYE.
Same as whining about "super-rich" movie stars or pop acts, such sweeping statements are utter nonsense and do nothing more than deflect from the truth and inflame the hyperbole.
RedLeicester said:
Ozzie Osmond said:
The real point here is very simple,
So a freelance cameraman who might work for the BBC, and a variety of other production houses over the course of a year and earn maybe £20k per annum is oh-so wicked for operating as a company? Oh the shame on them.- People at the bottom of our society avoid tax by working for cash etc.
- People at the top of our society avoid tax by the use of service companies.
- The mugs in the middle get nailed for full NI and PAYE.
Same as whining about "super-rich" movie stars or pop acts, such sweeping statements are utter nonsense and do nothing more than deflect from the truth and inflame the hyperbole.
A better example would be a senior manager who rather than being employed on a permanent basis sets up his own company and then is paid directly to the company. They can then avoid ni contributions by paying themselves a dividend, employ their wife as company secretary and use her tax allowance and offset expenses against their tax bill. They are essentially contracted to a single company for a long period of time on a rolling contract.
I don't know why certain sections of society think that it's perfectly acceptable to evade tax either through doing work cash in hand or muddying the waters between what is a self employed and permanent. Oh wait I do know. Greed.
sugerbear said:
RedLeicester said:
Ozzie Osmond said:
The real point here is very simple,
So a freelance cameraman who might work for the BBC, and a variety of other production houses over the course of a year and earn maybe £20k per annum is oh-so wicked for operating as a company? Oh the shame on them.- People at the bottom of our society avoid tax by working for cash etc.
- People at the top of our society avoid tax by the use of service companies.
- The mugs in the middle get nailed for full NI and PAYE.
Same as whining about "super-rich" movie stars or pop acts, such sweeping statements are utter nonsense and do nothing more than deflect from the truth and inflame the hyperbole.
A better example would be a senior manager who rather than being employed on a permanent basis sets up his own company and then is paid directly to the company. They can then avoid ni contributions by paying themselves a dividend, employ their wife as company secretary and use her tax allowance and offset expenses against their tax bill. They are essentially contracted to a single company for a long period of time on a rolling contract.
I don't know why certain sections of society think that it's perfectly acceptable to evade tax either through doing work cash in hand or muddying the waters between what is a self employed and permanent. Oh wait I do know. Greed.
sugerbear said:
RedLeicester said:
Ozzie Osmond said:
The real point here is very simple,
So a freelance cameraman who might work for the BBC, and a variety of other production houses over the course of a year and earn maybe £20k per annum is oh-so wicked for operating as a company? Oh the shame on them.- People at the bottom of our society avoid tax by working for cash etc.
- People at the top of our society avoid tax by the use of service companies.
- The mugs in the middle get nailed for full NI and PAYE.
Same as whining about "super-rich" movie stars or pop acts, such sweeping statements are utter nonsense and do nothing more than deflect from the truth and inflame the hyperbole.
A better example would be a senior manager who rather than being employed on a permanent basis sets up his own company and then is paid directly to the company. They can then avoid ni contributions by paying themselves a dividend, employ their wife as company secretary and use her tax allowance and offset expenses against their tax bill. They are essentially contracted to a single company for a long period of time on a rolling contract.
I don't know why certain sections of society think that it's perfectly acceptable to evade tax either through doing work cash in hand or muddying the waters between what is a self employed and permanent. Oh wait I do know. Greed.
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff