BBC presenters have told MPs they felt ‘forced’ to set up personal service companies (PSCs) when offered regular work by the broadcaster, which has said it plans to set up a dispute resolution process to investigate whether it should pay employers National Insurance Contributions (NICs) on such arrangements
Four journalists – Liz Kershaw, Kirsty Lang, Paul Lewis, and Stuart Linnel – appeared in front of a session of the culture select committee examining BBC pay this morning. Kershaw told MPs that when she was offered radio work she had ‘no choice but to agree to form a PSC’.
Kershaw, who originally joined the BBC as a staff member on contract in 2002, said that in 2013 when she asked to work part-time because of family issues, she was told BBC Radio 4 presenters were always employed as freelancers and that she had to set up a PSC. She said this made her feel ‘frightened’ because of her concerns about the lack of holiday or sick pay arrangements.
The question of PSCs in the media has gained prominence recently, after BBC regional news presenter Christa Ackroyd lost an IR35 appeal at tribunal over her employment status while being paid via a PSC and faces paying back some £400,000.
In advance of the committee’s session, the BBC said it was taking three steps following a number of recent questions as to whether or not it has some responsibility for people facing retrospective bills from HMRC after being paid through PSCs.
The BBC said it intends to set up ‘a fair and independent process’ under the supervision of the Centre for Effective Dispute Resolution (CEDR) to determine the right approach in cases where on-air presenters believe the BBC bears some liability in relation to demands for employers’ NICs. It has agreed to keep the National Audit Office updated on progress in this area. The BBC is also planning to invite broadcasters to consider together an industry-wide approach.
In a statement, the BBC said: ‘It is intended that the independent process under the supervision of the CEDR will allow some on-air presenters now facing historic demands for tax and NI to test the circumstances of their engagements via a PSC.
‘A consultation, to be overseen by CEDR, will first consider the criteria which people should have to meet in order for their case to be considered.
‘Those who qualify for the process would then be able to ask for a review of the circumstances around their engagement via a PSC, including reviewing documents that are available from the time.
‘The process will assess whether it is appropriate or reasonable, given the responsibility to the licence fee payer, for the BBC to make any contribution towards historic demands for employers NICs.’
Report by Pat Sweet
