Written evidence submitted by BBC employees
EMAIL EVIDENCE
EXAMPLE 1
Sent: 09 May 2011 15:07
Dear xxxxx,
I am writing to ask whether xxxx has been able to discuss the question of providing his services via a service company or partnership with his accountant.
Going forward, I am not able to offer a new long term contract with him as an individual presenting on a regular basis unless he can demonstrate his freelance status by providing his services via a company or partnership, so I do need to know whether or not he has been able to take this advice? I am happy to proceed for a further month under the current arrangement of monthly invoicing but after that we would have to review the situation.
I look forward to hearing from you once you’ve been able to discuss this with him.
With best wishes,
Sent: 18 January 2011 10:17
To:
Subject:
Dear xxxxx,
Thank you very much for confirming that.
The production department sent me through the requisition to pay half on signature and half on 29 January but if all work has been completed before that date then yes we should be able to release the full amount on signature.
Also, on a separate matter in relation to xxx, I thought I should take this opportunity to alert you to changes in the way we will need to contract regular presenters in future.
I know we have had correspondence previously about the possibility of xxxx providing his services via a service company as opposed to us contracting him directly. At the time he took advice from his accountant and felt that it wasn’t appropriate for him to do this. However, there has recently been a review of the contracts we use within the BBC for contracting presenters including those who provide services to the BBC over a longer duration. I have been advised that in the future the BBC is unlikely to be able to continue to engage xxx’s services on the current basis. The BBC is only likely to be able to offer longer term guaranteed commitments to those who have obtained independent advice on their financial status and demonstrated this status to the BBC by providing services through a company or partnership who will be the contracting party. The BBC is not privy to the external sources of income of its talent nor the extent of that income, whereas xxx’s financial advisors will be. We wrote to you on 27 May 2009 setting out an indicative level of use of xxx’s services and then contracted on an ad hoc basis. xxx’s current letter sets out our intentions up until 31 March 2011, but any future offers will be contingent on the provision of services via a company or partnership. Xxx may wish to discuss this again with his advisors and so I wanted to give you sufficient notice for him to be able to do this.
We understand that xxx may have concerns about the financial implications of setting up a company but given that most of our presenters have elected to structure their businesses in this way I understand there can also be additional benefits to freelance contributors. Xxx’s advisors will be able to inform him of the financial benefits. On the BBC’s part the benefit we can provide is that of a guaranteed contractual commitment to engage xxx’s services for a fixed price over a longer period. Without such an an arrangement we would only be able to contract xxx’s services on an ad hoc basis and irregularly.
So please do ask xxx to take the opportunity to consider this again and look forward to hearing from you in due course.
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EXAMPLE 2
From: XXXX
Sent: 18 December 2008 12:19
Subject: XXX 6 Music contract
Dear XXXX,
I do hope you’re well.
[We] have been reviewing the contributor contracts which are due to expire in March 2009, and I am pleased to be in a position to now discuss an offer to XXXX for his services to Radio 2 from April 2009.
We will need however for XXXX to liaise with his Accountant to set up a service company. Following a review by the Inland Revenue of the commercial sector of radio presenters earlier this year, and a subsequent modus operandi which has been issued (and is to apply throughout the industry to radio djs), after the 1st January the BBC will only engage on air talent for long term commitments of engagements if their services are provided through a service company (or registered partnership). Otherwise the BBC will proceed with letters setting out indicative levels of use and agreed fees (per period of use), with such services then being contracted on an ad hoc basis with no guaranteed commitment.
We would ask that therefore that XXXX liaises with his accountant (or other independent personal financial advisor) to verify his freelance status (as they will be best placed to make that assessment), and makes enquiries as to setting up a service company (or registered partnership). If he does proceed on that basis could you advise me of the registered name of the company or partnership, its registered office, the correspondence address and the account details for the payments. We will then issue a new contract with the company for XXXX’s broadcasting services setting out the guaranteed commitment.
I would be grateful if you could start the ball rolling on that. Provided we are in a position to engage XXXX’s services via a company we would be in a position to offer a guaranteed committment to a one year contract for XXX programmes for BBC 6 Music at £XXX each (with a total guarantee of £XX,XXX).
Otherwise we will write setting out the rate we can offer in a letter giving an indication of likely usage over the contract period and will arrange payment on an ad hoc basis (on invoice).
I look forward to hearing form you.
With best wishes for a very Happy Christmas,
XXXX
XXXX XXXX
Lawyer, Legal Affairs
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EXAMPLE 3
---------- Forwarded message ----------
From: XXXX XXXX
Date: Fri, Feb 10, 2012 at 5:36 PM
Subject: RE: Contract
To: xxx
SUBJECT TO CONTRACT
Dear xxx
There is no wiggle room, I'm sorry, but of course I understand why you are querying the policy.
Going forward this is standard BBC procedure and this is how we have been told to contract presenters with a regular pattern of work such as this. The directive is a result of an industry wide review carried out by HMRC.
My limited understanding of tax issues is that there are indeed costs for setting up a service company - but that having one also saves on tax. Obviously though I am not qualified to advise on tax issues and that is why we have to refer you to your own adviser/s.
Kind regards.
XXXX XXXX
Rights Executive, Talent and Rights Negotiation Group
E-mail: XXXX
Direct line: XXXX
Extension: XXX
Fax: XXXX