"Self employed" TV presenter chased by inland revenue

[timsabre]

This is an interesting story for those who follow the twists and turns of "freelance" status:

 

http://www.bbc.co.uk/news/uk-england-43074584

 

Christa Ackroyd, presenter of Look North, worked for the BBC through her own personal service company - Inland Revenue says the company should have paid tax and NI as it was employed by the BBC, she says she was self employed. The Inland Revenue has won, I think possibly because the BBC was her only customer, though it doesn't say so explicitly.

[Junior8]

The key sentence is the quote from HMRC - "Employment status is never a matter of choice; it is always dictated by the facts and when the wrong tax is being paid we put things right."

[Brian]

I would imagine she failed the 'right to substitute' test.

 

I would imagine she failed the 'right to substitute' test.

[bigclive]

I guess that if you had a single employer it would be an issue. It also suggests that if any of us get stable work with one employer for a long period of time then it's important to keep working with other companies now and then to prove that you're not tied to just one.

 

Not that I ever do actually want to be tied to a single employer. I like the variety of work that being self employed gives. It also lets you do work that you enjoy in short bursts, but you wouldn't want as a full time job.

 

Back in the Thatcher era when she was pushing the self employment thing to try and save money for her business friends I gave it a try, and while it was sometimes a bit bumpy financially the diversity of work and freedom between jobs is well suited to some of us technical loners.

[Jivemaster]

I was under the impression that one of the indicators of Self Employment was having a number of significant work providers.

[Junior8]

The judgement is here http://financeandtax.decisions.tribunals.gov.uk//Aspx/view.aspx?id=10300

 

From reading it I get the impression it wasn't about the presenter's self employment status per se but in relation to the Look North job only.

 

I do wonder however if she'd been operating as a sole trader and accounting under Schedule D HMRC would have found chasing any unpaid tax and NI, which could only have centred on the question of allowable expenses, worthwhile?

[paulears]

From my colleague who used to be BBC staffers, all of whom are now self-employed - HMRC don't like the way the BBC fudge it. I suspect the clue is that you are a pensioned BBC employee, and suddenly you are self-employed, doing EXACTLY the same job. The ex-BBC freelance camera folk often turn down extra shifts with the BBC to work for others, sometimes at a lower pay level - to keep their independence. The BBC get cross when they can't get their usual crews intact, but they realised the need to be available to multiple clients. With their presenters, the contract with the service company effectively guarantees their 'faces' remain constant, but seems to have backfired.

 

I get offered the odd day/half day when the crews have missing members, but can rarely afford to do it - because it's just too far to London or Salford. Totally OT - but it's not had much coverage that ITV are moving in to the old BBC studios in Wood Lane, and the studios have been refurbished, and are just about ready.

[GaryNattrass]

As I have said before it is why I took a staff job with SKY as being freelance in TV is just not worth it for me these days.

[kerry davies]

She tried to have the penny and the bun. Her PSC did work only for the BBC and it employed only her so either her PSC owed employer's NIC or the BBC did but she was definitely employed by just a single employer. She then went and sought and got a £40,000 bonus from the Beeb on the grounds of her exclusivity.

 

The case doesn't change much but reaffirms a couple of points we need to bear in mind.

1. If HMRC demand money it is not up to them to prove you owe it. It is up to you to prove you don't.

2. Once they start in they have the right to examine all your accounts and they WILL regard any unexplained deposits as "untaxed income".

3. If 95% of your income comes from one source you are an employee, don't even try to argue.

4. If you think you are on a winner don't tell anyone and do not get greedy.

[sandall]

In the "Producer Choice" / John Birt era a lot of on-screen talent was encouraged to set up PSCs, to get them (& their pensions) off the books, & many did so - some are possibly now regretting it.

 

.... it's not had much coverage that ITV are moving in to the old BBC studios in Wood Lane, and the studios have been refurbished, and are just about ready.

ITV have been using TC1 (as has the BBC) since September (Jonathan Ross was the first show in), & I believe have TC3 block-booked for several years, presumably while the South Bank Centre is re-developed.

[ImagineerTom]

All ITV breakfast / daytime & continuity are moving in to TC2&3 for several years until the TLS redevelopment is completed.

Every show that currently rents the main space @ TLS (graham norton, etc) is moving either to TC1 or Riverside (HIGNFY, etc) when it re-opens later this year.

With both elstree sites already operating close to capacity there's going to be a problem finding London studio space from 2019 onwards as there will be 12 proper studio's less than there were in 2010

[p.k.roberts]

In the "Producer Choice" / John Birt era ....

 

I didn't think we allowed profanity on this forum ..... :-)

[sandall]

[I didn't think we allowed profanity on this forum ..... :-)

Quite right too. I shall now wash my mouth out & disinfect my keyboard..