Editorial: MPs are right – the BBC must put its tax house in order

 

Share
Related Topics

Back in 1993, The Independent on Sunday revealed the unorthodox tax arrangements enjoyed by the then BBC director-general. John (now Lord) Birt had his salary paid into a private company, which allowed many of his costs, including suits, to be tax-deductible. When a public outcry ended that arrangement, licence-payers might have assumed that any similar arrangements lower down the corporation were ended, too. Almost the opposite seems to have happened. MPs have found that – 19 years later – the BBC has 25,000 such contracts, more than half of which benefit those regularly on air.

Where the individuals concerned work for several organisations, this arrangement can be justified, but not where the beneficiaries are the public faces of the BBC. Legal such contracts may be, but they set up an artificial distinction between BBC employees and offer financial advantages – including to the corporation, which does not pay National Insurance for those not paid as "staff". The BBC says it is reviewing the situation. The Public Accounts Committee chairman, Margaret Hodge, said: "Avoiding tax and National Insurance when paying public sector staff is almost always staggeringly inappropriate. The public sector must maintain the highest standards of propriety in its employment practices." Well said.

React Now

Latest stories from i100
iJobs Job Widget
iJobs General

Recruitment Genius: Brand Manager

Negotiable: Recruitment Genius: Do you wish to be part of an exciting journey ...

Guru Careers: Talent Manager

£30-35k (P/T - Pro Rata) + Benefits: Guru Careers: We are seeking an experienc...

Recruitment Genius: Print / Warehouse Operative

£17000 per annum: Recruitment Genius: This is a fantastic opportunity to join ...

Beverley James: Accounts Assistant

£23,000: Beverley James: Are you looking to join a finance team shrouded in th...

Day In a Page

Read Next
 

Jihadi John went to my university – so what?

James Tennent
 

Japan's torture of my father was horrific — so why are they considering watering down the apology for their wartime past?

Liz Bestic
HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?
How we must adjust our lifestyles to nature: Welcome to the 'Anthropocene', the human epoch

Time to play God

Welcome to the 'Anthropocene', the human epoch where we may need to redefine nature itself
MacGyver returns, but with a difference: Handyman hero of classic 1980s TV series to be recast as a woman

MacGyver returns, but with a difference

Handyman hero of classic 1980s TV series to be recast as a woman
Tunnel renaissance: Why cities are hiding roads down in the ground

Tunnel renaissance

Why cities are hiding roads underground
'Backstreet Boys - Show 'Em What You're Made Of': An affectionate look at five middle-aged men

Boys to men

The Backstreet Boys might be middle-aged, married and have dodgy knees, but a heartfelt documentary reveals they’re not going gently into pop’s good night
Crufts 2015: Should foreign dogs be allowed to compete?

Crufts 2015

Should foreign dogs be allowed to compete?
10 best projectors

How to make your home cinema more cinematic: 10 best projectors

Want to recreate the big-screen experience in your sitting room? IndyBest sizes up gadgets to form your film-watching
Manchester City 1 Barcelona 2 player ratings: Luis Suarez? Lionel Messi? Joe Hart? Who was the star man?

Manchester City vs Barcelona player ratings

Luis Suarez? Lionel Messi? Joe Hart? Who was the star man at the Etihad?
Arsenal vs Monaco: Monaco - the making of Gunners' manager Arsene Wenger

Monaco: the making of Wenger

Jack Pitt-Brooke speaks to former players and learns the Frenchman’s man-management has always been one of his best skills
Cricket World Cup 2015: Chris Gayle - the West Indies' enigma lives up to his reputation

Chris Gayle: The West Indies' enigma

Some said the game's eternal rebel was washed up. As ever, he proved he writes the scripts by producing a blistering World Cup innings
In Ukraine a dark world of hybrid warfare and murky loyalties prevails

In Ukraine a dark world of hybrid warfare

This war in the shadows has been going on since the fall of Mr Yanukovych
'Birdman' and 'Bullets Over Broadway': Homage or plagiarism?

Homage or plagiarism?

'Birdman' shares much DNA with Woody Allen's 'Bullets Over Broadway'
Broadchurch ends as damp squib not even David Tennant can revive

A damp squib not even David Tennant can revive

Broadchurch, Series 2 finale, review
A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower: inside the mansion of Germany's 'Bishop of Bling'

Inside the mansion of Germany's 'Bishop of Bling'

A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower