BBC Stars | Employed or Self-Employed?

BBC staff paid as freelancers are being targeted to be taken on the payroll. This means the BBC will have to pay them holiday pay/statutory sick/maternity/paternity/adoption pay, pension contributions, and pay employers Class 1 NIC’s.

The BBC argue this has to be cost-neutral to them, so the freelancers have been offered either a 25% pay cut with staff benefits such as the BBC’s pension, or a 13% pay cut with only minimum conditions.

The BBC were criticised for paying some 804 staff through Personal Service Companies (PSC) which can be used as a legal way of reducing tax liabilities.

If you are unsure if someone you are paying is a freelancer or an employee you can check their status using HMRC’s Employment Status Indicator (ESI) here

HMRC can demand back-dated tax if it decides that someone you paid as a freelancer should have been paid as an employee all along.


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