BBC: Pay

Treasury written question – answered on 10th September 2018.

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Photo of Daniel Kawczynski Daniel Kawczynski Conservative, Shrewsbury and Atcham

To ask the Chancellor of the Exchequer, whether he is taking steps in relation to (a) the BBC and (b) the employees of the BBC who previously used (i) personal service companies and (ii) other remuneration schemes and as a result are now liable for increased tax bills; and if he will make a statement.

Photo of Mel Stride Mel Stride Financial Secretary to the Treasury and Paymaster General

HM Revenue and Customs do not comment on identifiable cases because of their duty to maintain taxpayer confidentiality.

The off-payroll working rules (often known as IR35) ensure that individuals who work like employees pay broadly the same income tax and National Insurance contributions (NICs) as other employees, regardless of whether they work through a personal service company. These rules have been in place for nearly 20 years but non-compliance was widespread.

In Finance Act 2017 the Government reformed the rules in the public sector. The reform introduced no new tax liability but moved responsibility for operating the rules to public authority engagers, including the BBC. Initial evidence suggests that the reform has been successful and more people are paying the right tax.

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