We should remember who it is that actually saved tax here:
The BBC said yesterday: “We recognise that unless the rules are effectively enforced, service companies give an individual greater opportunity to reduce his or her tax liability than an employee whose tax and NIC [national insurance] are deducted at source.”
No, this isn\’t the case.
It\’s the BBC that gains the benefit through not having to pay employers national insurance at 13.8% on the entire pay package of the employee.
When you attempt to extract cash from a personal services company you end up paying pretty much the same amount of tax either way. Not exactly, but pretty much the same. And the difference is indeed dwarfed by the £13,800 per £100,000 of wages (ish, ish) saved by the BBC.
This is about the BBC tax dodging, not the employees.
And, to be honest, I can\’t see what there is to complain about. Tax funded operation pays less in tax so that the tax funding goes further doesn\’t particularly bother me.