The BBC’s new Personal Services Comedy
Maybe you’ve heard of it. It’s the one where a bunch of too-clever-by-half wheeler dealers get caught out for tax dodging, then they start crying and blaming each other.
The proceedings inside Parliament’s Committee Rooms are not known for producing outstanding satire, but there are always exceptions.
Earlier today, various BBC presenters including Kirsty Lang and Liz Kershaw were giving evidence on the widespread use of Personal Services Companies (PSCs) within that organisation. These companies have been increasingly scrutinised by both the press and HMRC over recent years because of well-heeled professionals using them as vehicles to minimise their tax exposure. It’s a shame that the rest of us aren’t permitted to offset the cost of our lunch or our daily commute, but I digress.
However, according to both Lang’s and Kershaw’s accounts, the situation at the BBC was entirely different. The Digital, Culture, Media & Sport Committee heard tales of the taxpayer funded broadcaster forcing its presenters to set up such companies in order to avoid paying National Insurance on their salaries.
It’s unclear to what extent the presenters themselves benefited from such arrangements, but I’ve never heard of a Personal Services Company being formed to increase tax liability. If Christa Ackroyd’s tax bill of £419K is anything to go by, then we’re talking about a lot more than a couple of lunches and a few train tickets here and there.