The BBC appear to be the latest public sector organisation to face an investigation regarding employees use of limited and personal service companies. The House of Commons public accounts committee has previously looked into government contractors after the high profile case of Ed Lester of the student loans company.
Reported by Exaro News, the public accounts committee led by Margaret Hodge, said the review comes off the back of the initial report produced by Danny Alexander. Ms Hodge has suggested that this does not cover the whole picture, which is why the BBC and also the Local Government Association are being called to question.
More than 3,000 BBC workers are thought to be paid through personal service companies, with 31 earning over £100,000 and a further 5 on over £150,000, all without having tax deducted at source through PAYE.
The figures were obtained following a freedom of information act from conservative MP David Mowat, who said that “it is right that this practice is examined, and these highly paid people asked to pay PAYE like the rest of us.” A BBC spokesperson confirmed that they would attend the hearing next week, especially at a time when avoidance is very much in the public eye.
Although the original treasury review worried contractor groups such as the PCG, the commons committee group are keen to investigate arrangements like this in the public sector, with HMRC estimated to recoup more around £100m in unpaid tax, NI, interest and penalties.
ICS work with a team of experts in employment and tax law to ensure our services are fully compliant with existing IR35 legislation and the latest government regulations, such as the AWR. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.