The BBC and contractor group the FCSA have responded to reports yesterday that the BBC were facing a public accounts committee investigation into the way they pay some staff through limited companies.
The case is part of a wider public sector investigation into the use of ‘off-payroll’ staff who use limited and personal service companies, therefore avoiding some tax and NI insurance. A BBC spokesperson defended their use of freelancers, especially as they offer flexibility whilst still paying the appropriate levels of tax.
The chairman of the Freelancer and Contractor Services Association (FCSA) has responded to what he feels is an attack on the whole freelance and contractor community. He said; “The latest attack on freelance workers, this time at the BBC, demonstrates a total lack of understanding of the flexible workforce and the contribution it makes to the British economy.”
“There is nothing wrong or inappropriate for any employer, including the BBC to employ freelancers, if done properly, for the right reasons and where those concerned pay appropriate taxes.” He continued to remind the government that thousands of people undertake freelance contracting work, in a legitimate and mutually beneficial way.
Mr Davis finished by suggesting that the government need to properly support this workforce in order to help the growth of the economy. “It is this flexible movement of people to go where and when their expertise is needed that boosts the competitive elements of the UK economy, which are recognised as necessary for recovery and growth.”
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.