IR35 under spotlight as BBC presenters targeted

by Susie Hughes at 14:27 11/10/16 (News on IR35)

The controversial freelancer tax, IR35, has hit the headlines again as about 100 BBC presenters are being investigated over whether they paid too little tax by working as freelancers rather than as staff.

Legal documents have revealed that HM Revenue and Customs (HMRC) is examining 100 figures who were paid by the corporation via personal service companies (PSCs). The information has come to light during a tribunal in a case involving BBC News presenters Tim Willcox and Joanna Gosling. The BBC said the tribunal related to between 2006 and early 2013, when it adopted a new employment status test. The case relates to whether Willcox and Gosling were eligible to pay tax as freelancers through their own personal services companies or should have applied the intermediaries legislation, IR35, as so-called 'disguised employees'. The pair have appealed against the extra tax and National Insurance contributions which HMRC decided were due. According to the ruling, both became staff in 2014. 'Test the freelancer model' The BBC revealed that HMRC has examined a list of 469 current or former presenters who have peen paid via personal service companies and put around 100 cases "under consideration", according to a BBC application to the First-Tier Tribunal. The BBC's application said: "The BBC also understands that HMRC has initiated or indicated their intention to initiate IR35 proceedings in relation to presenters who are engaged by other broadcasting organisations. "The appeals are therefore extremely important not only to the individuals in question but also to the BBC and to the broadcasting industry as a whole. "The appeals are likely to be the first cases to test the freelance model in the broadcasting industry against the IR35 legislation." History The BBC has 'history' with the use of high-profile freelancers who operated through their own companies, when an argument could have been made that they should have been 'on-payroll'. Advertisement Other public sector bodies, including Government departments have also been publicly criticised for the practise and the Government has attempted to tighten up on the use of freelancers with, what some think, as over-restrictive burdens and responsibilities. An HMRC spokesperson said employment status is 'never a matter of personal choice and is always dictated by the specific facts'. The spokesperson continued: "When the employment relationship does not accurately reflect the underlying reality of the relationship, the wrong tax is paid then we intervene to ensure the rules apply as parliament intended. "While there can be many legitimate business reasons for workers being employed through their own companies, there are rules in place enabling HMRC to make sure people who provide their services in this way pay the right tax and National Insurance." A BBC statement said it was 'an industry-wide issue and affects those who have been engaged in this way for a number of different organisations'. Tweet -- If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'. - Susie Hughes © Shout99 2016

This article was printed from Shout99.com
Copyright 1999-2015 Shout99 Ltd
All Rights Reserved