'˜Lying' BBC saved £10m a year on presenters' National Insurance, MPs told

Christa AckroydChrista Ackroyd
Christa Ackroyd
The BBC saved around £10m a year on National Insurance payments alone by paying presenters through a controversial arrangement involving personal companies, MPs have been told.

Around 100 on-air personalities are thought to be facing investigations over their use of such companies and some are reported to be considering legal action against the corporation.

Christa Ackroyd, the former presenter of Look North in Yorkshire, was among the first to be the subject of a case brought by HMRC.

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She said earlier this month that she had suffered “five years of hell” after being dropped in the wake of the investigation.

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She lost a tribunal judgement but was cleared of any wrongdoing after the judge ruled she had entered into the arrangement in good faith.

Journalist Paul Lewis, presenter of Radio 4’s Money Box, told the Commons Culture Committee that the arrangements could have saved the BBC 30 per cent of the cost of employing presenters, some of whom lost rights to sick pay, maternity leave and pensions.

Around £10m was saved annually on employer’s National Insurance contributions, he estimated.

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The BBC – which declined to give evidence – could face claims for compensation running into tens of millions over loss of pension rights, the committee heard.

Mr Lewis, who refused to set up his own personal company, told MPs that relatively low-paid presenters on local radio and on Radios 3 and 4 were treated as “disposable” by the BBC.

“This isn’t a story of well-paid presenters trading through companies to avoid tax,” he said.

“This is the story of the BBC forcing hundreds of presenters to form companies and treat them as freelancers because that gave the BBC flexibility and protected licence fee payers.”

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