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Anorak | This is how those sods at the BBC are dodging all their taxes

This is how those sods at the BBC are dodging all their taxes

by | 15th, May 2013

BBC tax

DO you recall a year or so back when we were all having a lovely time shouting at the BBC stars who were all avoiding tax by being paid into companies? And the BBC promised to do something about it?

It’s a year later and not a lot has been done. For the terribly difficult question is, well, what should be done ?

BBC plans to force freelance presenters back on to the employment books to end suspicions of tax avoidance have descended into chaos, it emerged last night,

Stars are being made to sign short-term contracts because the BBC has been unable to thrash out an acceptable way of paying them on a full time basis.

The corporation decided to act following concerns from MPs about the corporation’s use of so-called personal service companies as a way of channelling stars’ earnings.

The problem is that, yes, this payment into companies does indeed lead to tax dodging. But not particularly by the stars themselves: it’s the BBC that gets off a large tax bill through the process.
So, you’re a PAYE employee. You get paid: you pay income tax and national insurance on your whack. But after about £40k, you’re only paying 1 or 2 % NI. Plus income tax of course.
Instead, you set yourself up a little company. You pay yourself £4k a year from the company and don’t pay any NI. The company pays corporation tax on the profits. You then pay yourself the profits

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Posted: 15th, May 2013 | In: Money Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink

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