BBC to crack down on tax-avoiding stars after accusation of being 'complicit' in tax avoidance

The BBC currently allows some workers to be paid as if they were companies rather than individual staff

BBC star names may no longer be able to reduce their tax contribution by being paid through personal service companies under proposals being drawn up by the BBC Trust.

The Public Accounts Committee accused the broadcaster of being “complicit” in tax avoidance because it allows some workers to be paid as if they were companies rather than individual staff.

The newsreader Fiona Bruce and Newsnight presenter Jeremy Paxman are among those believed to be paid in this fashion, which allows the recipient to pay corporation tax of 21 per cent on their company’s earnings, rather than income tax of up to 50 per cent. The BBC also avoids paying National Insurance contributions under this mechanism.

Lord Patten, the BBC Trust chairman said it had asked Deloitte to conduct a complete review all of its tax arrangements and the consultants’ report will be published next week.

Tax arrangements for some of those 4,500 individuals currently paid as freelancers will be tightened up. Lord Patten told the Broadcasting Press Guild: “Some freelances will be put on the payroll.” The BBC may have to renegotiate its contracts with some well-known faces.

Where service companies are currently used, Lord Patten promised to give more information to HMRC. “We want to be clear on the tax liability and we may wish to go further. I hope other public sector organisations will do the same,” he said.

He denied that the BBC used service company payments to avoid tax. “This is not a way of conniving in the avoidance of tax. It was done to avoid the licence-fee payer becoming liable for any unpaid taxes by the people being paid.”

MPs had said that the BBC could not provide “any assurance” that those employed on company contracts were paying the correct amount of tax.

Their report said: “Although the BBC told us it provides information on its off-payroll arrangements to HM Revenue & Customs, it has no means of ensuring that its freelancers are paying the right amount of tax.”

News
Snoop Dogg pictured at The Hollywood Reporter Nominees' Night in February, 2013
people... says Snoop Dogg
News
i100
Life and Style
fashion Designs are part of feminist art project by a British student
Life and Style
food + drinkZebra meat is exotic and lean - but does it taste good?
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Arts and Entertainment
Residents of Derby Road in Southampton oppose filming of Channel 4 documentary Immigration Street in their community
tv
News
i100
Extras
indybest
Sport
Scottish singer Susan Boyle will perform at the Commonwealth Games opening ceremony in Glasgow
commonwealth games
News
Lane Del Rey performing on the Pyramid Stage at Glastonbury 2014
people... but none of them helped me get a record deal, insists Lana Del Rey
Arts and Entertainment
Dwayne 'The Rock' Johnson stars in Hercules
filmReview: The Rock is a muscular Davy Crockett in this preposterous film, says Geoffrey Macnab
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Media

Web / Digital Analyst - SiteCatalyst or Google Analytics

competitive: Progressive Recruitment: My client who are a leading publisher in...

Data Scientist

competitive: Progressive Recruitment: A data analytics are currently looking t...

Graduate Sales Executive

17.5k + Commission (£18.5k after probation period): ESI Media: You will be res...

PPC Account Managers

£25k - £30k (DOE): Guru Careers: Two expert PPC Account Managers are needed to...

Day In a Page

Noel Fielding's 'Luxury Comedy': A land of the outright bizarre

Noel Fielding's 'Luxury Comedy'

A land of the outright bizarre
What are the worst 'Word Crimes'?

What are the worst 'Word Crimes'?

‘Weird Al’ Yankovic's latest video is an ode to good grammar. But what do The Independent’s experts think he’s missed out?
Can Secret Cinema sell 80,000 'Back to the Future' tickets?

The worst kept secret in cinema

A cult movie event aims to immerse audiences of 80,000 in ‘Back to the Future’. But has it lost its magic?
Facebook: The new hatched, matched and dispatched

The new hatched, matched and dispatched

Family events used to be marked in the personal columns. But now Facebook has usurped the ‘Births, Deaths and Marriages’ announcements
Why do we have blood types?

Are you my type?

All of us have one but probably never wondered why. Yet even now, a century after blood types were discovered, it’s a matter of debate what they’re for
Honesty box hotels: You decide how much you pay

Honesty box hotels

Five hotels in Paris now allow guests to pay only what they think their stay was worth. It seems fraught with financial risk, but the honesty policy has its benefit
Commonwealth Games 2014: Why weight of pressure rests easy on Michael Jamieson’s shoulders

Michael Jamieson: Why weight of pressure rests easy on his shoulders

The Scottish swimmer is ready for ‘the biggest race of my life’ at the Commonwealth Games
Some are reformed drug addicts. Some are single mums. All are on benefits. But now these so-called 'scroungers’ are fighting back

The 'scroungers’ fight back

The welfare claimants battling to alter stereotypes
Amazing video shows Nasa 'flame extinguishment experiment' in action

Fireballs in space

Amazing video shows Nasa's 'flame extinguishment experiment' in action
A Bible for billionaires

A Bible for billionaires

Find out why America's richest men are reading John Brookes
Paranoid parenting is on the rise - and our children are suffering because of it

Paranoid parenting is on the rise

And our children are suffering because of it
For sale: Island where the Magna Carta was sealed

Magna Carta Island goes on sale

Yours for a cool £4m
Phone hacking scandal special report: The slide into crime at the 'News of the World'

The hacker's tale: the slide into crime at the 'News of the World'

Glenn Mulcaire was jailed for six months for intercepting phone messages. James Hanning tells his story in a new book. This is an extract
We flinch, but there are degrees of paedophilia

We flinch, but there are degrees of paedophilia

Child abusers are not all the same, yet the idea of treating them differently in relation to the severity of their crimes has somehow become controversial
The truth about conspiracy theories is that some require considering

The truth about conspiracy theories is that some require considering

For instance, did Isis kill the Israeli teenagers to trigger a war, asks Patrick Cockburn