No doubt you will have seen the press coverage of a local ex-BBC presenter who is said to owe HMRC over £400,000 in taxes following a recent tax case. But what is this all about.
Many BBC presenters have been operating via a limited company. This means that they have not been treated as employees of the BBC and so PAYE and NIC has not been deducted.
This is correct provided that they do not in reality have a contract which has all of the characteristics of employment. If they do, their own limited company should have been operating PAYE and paying NIC on an annual basis under a regime commonly known as IR35.
This is an area of great interest to HMRC and so if you operate in the same way as the BBC news presenters, and don’t comply with IR35, this is probably a good time to review your tax position.
For more information, please contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org.