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BBC stops using personal service companies

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23rd Jan 2014
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Some BBC presenters are facing pay cuts of up to 25% as the broadcaster makes them go onto the payroll after employing them through personal service companies.

BBC is telling some of its most famous faces that they will have to accept a reduced salary in return for staff benefits such as holiday pay and pension contributions, the Telegraph reported.

The corporation was criticised by MPs and the media in 2013 for letting some of its staff to be paid through personal services companies, a legal way to reduce tax.

At the time, BBC CFO Zarin Patel told politicians that of 467 presenters, 148 are on long-term contracts through service companies and added that the broadcaster did not try to avoid tax.

Public Accounts Committee (PAC) chair Margaret Hodge had previously said she heard from one long-term presenter employed by the BBC for more than 20 years that he had to go "off books into a service company" or he would not be employed.

The BBC began moving up to 100 of its stars onto staff contracts at the end of last year.

Staff who have been affected were informed by the corporation that negotiation starting points are a 13% pay cut if presenters agree to become employees with the statutory minimum conditions set down by law, or a 25% salary reduction if they want enhanced BBC terms.

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By Ben Saunders
23rd Jan 2014 14:23

Looking into my crystal ball...

I look forward to seeing the BBC hauled back in front of the PAC when these individuals receive huge pay-outs as a result of their employment being terminated...

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