 |
Best advice from Parasol Group
Over 47,000 satisfied contractors. Umbrella or Ltd? We can help. Call 0800 458 0818. |
Many top BBC presenters are limited company contractors
Posted Oct 4, 2009
The mainstream press has expressed its 'shock' as it has been revealed that many BBC personalities - including Jeremy Paxman and Chris Moyles - 'avoid tax' by working via their own limited companies.
According to various Sunday papers, including The Telegraph and The Times, the BBC has advised top presenters to set up their own limited companies to "convince the tax man that they are legitimately working as freelancers".
This revelation will come as no surprise to most IT contractors, many of whom have used the limited company business structure for years, and have had to cope with the complexities of IR35 tax legislation for a decade.
Of course, BBC presenters pay less NI and tax by working via their own personal service companies. Even more so when the new punitive 50% tax rate comes into play in April 2010 for income over £150,000.
By retaining many of its staff as contractors, the BBC itself will not be liable to 12.8% employers national insurance on the significant sums it pays to many of its presenters.
According to The Times, the total tax and NI payable by a presenter on £1m per year (such as Jeremy Paxman), would amount to £627,000 if they were classed as a normal BBC 'employee', compared to a total tax bill of £520,100 in corporation and dividend tax via the limited company structure.
Amusingly, a BBC spokesman told the Telegraph:
"Some individuals working as freelancers in broadcasting, and a range of other sectors, like IT, set up service companies which deal with their tax arrangements and this is perfectly lawful."
It would be interesting to see how HMRC would view the IR35 status of these high profile individuals!
Contractor Services
- Professional Indemnity Insurance - Essential cover from Hiscox
- The fair umbrella company - take home more pay with paraplus
- InTouch Contractor Accounting - specialist online service & great advice
- Parasol - the UK's favourite umbrella company
- Contract Experts - ClearSky Accounting on 08000 325 326
- Helix Management Ltd - Up to 90% retention. Same day payments.
- Umbrella Company - 12,000 contractors can't be wrong!
- Together we're stronger! - Join PCG, representing contractors
- Cloud 9 Group - Umbrella Solutions only £27.50 per week
- Qdos - IR35 experts - Providers of low cost contractor insurance
- K & B Accountancy Group - Fixed fee contractor accounting only £75pm
- Free IR35 & Tax Review - Call ICS on 0800 195 3750
- Contractor Mortgages - the best deals, based on your contract rate alone!
Related Articles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
