MPs slam BBC over ‘chaotic’ handling of freelance presenter tax system
MPs have launched a scathing attack on the BBC over a “muddled and chaotic” approach to freelance workers that left hundreds of presenters liable to tax investigations.
The Public Accounts Committee (PAC) last year launched an inquiry after it emerged the complex employment status of the broadcaster’s freelancers could mean tax laws were being broken.
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In its findings, published today, the PAC concluded the employment of freelance employees had been mishandled and the BBC’s reputation had been damaged.
“The BBC’s mishandling of its use of personal service companies has caused misery and hardship for those affected and has risked bringing the BBC into disrepute,” the report states.
The probe centred on the use of public service companies (PSC), which grant staff members self-employed status.
A change in the law in April 2017 meant the BBC, which hired 60,000 freelancers in the year from 2017 to 2018, became responsible for determining the status of staff employed through PSCs.
But last year a group of 170 presenters penned an open letter to the broadcaster slamming its handling of the changes and accusing it of forcing them into the companies against their will.
An investigation by the National Audit Office (NAO) later found the BBC had wrongly defined some of its staff as self-employed, leaving roughly 800 presents vulnerable to tax investigations. As of October last year, HMRC had roughly 100 open investigations into BBC-related PSCs.
The PAC has now denounced the BBC’s handling of the affair, describing its communication with those affected as “unacceptably poor”.
“The BBC has serious work to do if it is to rebuild trust following what was a damagingly incoherent approach to hiring freelancers,” said PAC chair Meg Hillier.
“The BBC’s failure to properly manage its use of personal service companies has had a devastating effect on individuals and revealed significant weaknesses in the corporation’s processes.”
The BBC has apologised to people affected and is currently trying to reach a settlement with HMRC for outstanding tax claims.
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The PAC said it welcomed the BBC’s commitment to help repair the damage, but said “apologising is not enough”.
“The BBC needs to get a better grip of its management of its freelancer workforce if it is to repair its relationship with TV and radio presenters and restore its reputation,” it said.