MPs raise concerns over BBC staff tax set-up

Friday 5 October 2012

MPs have raised concerns that the BBC employs 25,000 people a year who do not pay tax at source.

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The cross-party Public Accounts Committee (PAC) was "shocked" at how many off-payroll contracts, under which people make their own tax and national insurance payments, were provided by the BBC.

The number includes 13,000 people who appear on television and radio – so-called on-air "talent" – and another 12,000 off-air staff. Some 3000 are paid via private companies, potentially allowing them to limit their tax liabilities.

PAC chairwoman Labour MP Margaret Hodge said the use of off-payroll arrangements gave rise to "suspicions of complicity in tax avoidance".The figures emerged as part of a PAC inquiry set up after controversy over Student Loans Company boss Ed Lester's employment through a personal service company without tax being deducted.The Treasury said in May, after a review of the practice in Whitehall, more than 2400 staff, each earning more than £58,200 a year, were being paid directly and without PAYE deductions.But the PAC warned the Treasury's review of off-payroll arrangements had been "limited" as it did not cover the wider public sector like local government, the NHS or the BBC.The BBC told the PAC inquiry its off-payroll staff were "freelance workers" and the arrangements were "a pretty standard model" in the media industry and "important to the eco-nomics of the BBC".It is conducting a detailed review of the practice.However, in a report published yesterday, the PAC stressed that the BBC could not provide "any assurance" those employed on such contracts were paying the appropriate tax.Under the new Treasury rules all senior public sector staff must be on the pay- roll unless there are exceptional temporary circumstances. The PAC said there was uncertainty as to what were "exceptional circumstances".

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MPs raise concerns over BBC staff tax set-up

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