parliamentary information office: So several thousand will now move into permanent jobs with a very nice BBC pension scheme and complete with good redundancy and relocation packages if ever needed?
parliamentary information office: At the end of the day you can't blame the BBC staff for trying to pay less tax. Are they breaking the law?? No. I think the majority of people would do the same if they could. Some would argue that what they are doing is immoral but again no law is broken Blame must surely lie with the govenment who allowed for this in the first place. In short they did not do their homework when writing the law and regulations. As for BBC they are complicit in this and better clean house
parliamentary information office: Contractors often work through personal companies or under an 'Umbrella' company, moving tax liability from the employer to their self. Its normal for this arrangement to be required.
parliamentary information office: Yet again sloppy reporting and so much ignorance shown by many of those posting on this thread. There is no such entity in law as a "Personal Service Company". The contract will be between BBC and the limited company not the individual. As such the limited company will receive a fee for the services provided not a salary. The individual will be an employee of the company which they own from which they will draw their remuneration. The report quite correctly states that Corporation tax will be paid. What it implies ( and why let the facts get in the way of being able to stir up the envy of those who are ill-informed, which sells more papers) is that Corporation tax is the only tax paid. Corporation tax is paid by companies on profits which is what is left after relevant operating costs are taken out. Amongst these costs will be salary, pension contributions and various taxes including PAYE, NI (employer's and employee's), all of which are conveniently omitted from the report. Unless these companies are operated completely outside of the law, in which case they should be quite rightly pursued for tax evasion, they cannot avoid paying the same taxes and more than those who choose to be "permanent employees" (a misnomer when the main difference between a freelance and "permanent employees" is three weeks notice) pay. The legitimacy of the right to manage tax liability by legal means is enshrined in case law. Lord Clyde gave this famous quote (amongst taxation circles) in the case of Ayrshire Pullman Motor Services v Inland Revenue [1929] 14 Tax Case 754, at 763,764: "No man in the country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or property as to enable the Inland Revenue to put the largest possible shovel in his stores. The Inland Revenue is not slow, and quite rightly, to take every advantage which is open to it under the Taxing Statutes for the purposes of depleting the taxpayer's pocket. And the taxpayer is in like manner entitled to be astute to prevent, so far as he honestly can, the depletion of his means by the Inland Revenue"
Parliamentary Information Office - views on the business, education, healthcare topics.
parliamentary information office: At the end of the day you can't blame the BBC staff for trying to pay less tax. Are they breaking the law?? No. I think the majority of people would do the same if they could. Some would argue that what they are doing is immoral but again no law is broken Blame must surely lie with the govenment who allowed for this in the first place. In short they did not do their homework when writing the law and regulations. As for BBC they are complicit in this and better clean house
parliamentary information office: Contractors often work through personal companies or under an 'Umbrella' company, moving tax liability from the employer to their self. Its normal for this arrangement to be required.
parliamentary information office: Yet again sloppy reporting and so much ignorance shown by many of those posting on this thread. There is no such entity in law as a "Personal Service Company". The contract will be between BBC and the limited company not the individual. As such the limited company will receive a fee for the services provided not a salary. The individual will be an employee of the company which they own from which they will draw their remuneration. The report quite correctly states that Corporation tax will be paid. What it implies ( and why let the facts get in the way of being able to stir up the envy of those who are ill-informed, which sells more papers) is that Corporation tax is the only tax paid. Corporation tax is paid by companies on profits which is what is left after relevant operating costs are taken out. Amongst these costs will be salary, pension contributions and various taxes including PAYE, NI (employer's and employee's), all of which are conveniently omitted from the report. Unless these companies are operated completely outside of the law, in which case they should be quite rightly pursued for tax evasion, they cannot avoid paying the same taxes and more than those who choose to be "permanent employees" (a misnomer when the main difference between a freelance and "permanent employees" is three weeks notice) pay. The legitimacy of the right to manage tax liability by legal means is enshrined in case law. Lord Clyde gave this famous quote (amongst taxation circles) in the case of Ayrshire Pullman Motor Services v Inland Revenue [1929] 14 Tax Case 754, at 763,764: "No man in the country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or property as to enable the Inland Revenue to put the largest possible shovel in his stores. The Inland Revenue is not slow, and quite rightly, to take every advantage which is open to it under the Taxing Statutes for the purposes of depleting the taxpayer's pocket. And the taxpayer is in like manner entitled to be astute to prevent, so far as he honestly can, the depletion of his means by the Inland Revenue"
Parliamentary Information Office - views on the business, education, healthcare topics.
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