BBC Employment Test Goes Live

In-house status test finally introduced by the Beeb

Following criticism by the Public Accounts Committee and a review by BBC’s auditors, Deloitte LLP, the BBC has finally got round to initiating its new employment status test for freelance engagements that it had threatened to introduce from the 6th April 2013. The test will coincide with contract renewals this week.

Originally the test was going to be based around all relevant employment status tests, with four core principles which are particularly relevant to the broadcasting industry, namely:

1. The length of the engagement
2. The certainty of work provided by the BBC
3. The manner of payments from the BBC and the proportion of income earned elsewhere
4. The extent to which the BBC exercises control over the way duties are performed

However, it will now examine how much editorial control Aunty Beeb has over an individual’s arrangements. Those presenters and newsreaders that are found to be under ‘significant’ control will be left with Hobson’s choice; either join the ranks of the permanent staff or leave.

Jeremy Paxman and Fiona Bruce are likely to be casualties of the new test along with an estimated 3,200 of the 16,000 production freelancers.

Those freelancers who have a more casual relationship and only appear on-air short term will have their self-employed status preserved.

The Beeb are unable to confirm how many ‘to-camera’ freelancers may be affected as these will be judged on a case-by-case basis.

Deloitte’s report, published in November 2012, identified 804 freelance talent paid in excess of £50,000 in 2011/12 as being priorities for the new test. Of this number it estimated that 131 individuals could be offered staff positions when their current contracts expire. The report also found no evidence that the Corporation engaged PSCs to avoid tax or NIC nor that it directly advocated the use of PSCs. Many of the files reviewed showed that the BBC had offered individuals staff contracts or PSC contracts but following negotiations on-air talent had been reluctant to join the payroll.

Reacting to the BBC’s internal status test, Simon McVicker, PCG’s director of Policy and Public Affairs, said, “The broadcasting industry has always used freelancers extensively. This is because it is a model that works so well in an industry where highly skilled experts, both in front of and behind the camera, are needed for projects of limited duration, often at short notice …….

If there are concerns about tax, it is the tax system that should be reformed, not the way these experts are working. Freelancers are helping the BBC to retain their position as one of the best regarded broadcasters in the world.”

No doubt tax avenger, Margaret Hodge, will be rather smug with herself for instigating this weeding out of freelancers within the Beeb. One down, a few to go!