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Yesterday, the BBC published a review of its engagement of freelancers' contracting arrangements. The review covered both on-air and off-air individuals contracted in the financial year 2011/12.

The BBC said that one of its key findings was that, although its existing policy has proved to be inconsistent, there was no evidence that the BBC used personal service companies to aid the avoidance of Income Tax or National Contributions.

Nevertheless, ostensibly to counter the public perception that off-payroll contracts and personal service companies are used to avoid tax, it will " move away from its previous position of engaging on-air talent on long-term contracts as personal service companies" and  "will only contract via a personal service company when it is absolutely satisfied that an individual should not be on the payroll or self-employed".

It also notes that there should be considerably fewer such arrangements in future.

It may appear difficult to reconcile this with the earlier claim that the BBC had no policy of avoiding tax or National Insurance Contributions but, as we have said before, ( Government is being Hypocritical when Dealing with Individuals through Limited Companies ), a key driver for such arrangements will have been for the hirer to avoid employer obligations generally, rather than just tax and NIC.

But it is perhaps worth also highlighting that last comment:

"In future, the BBC will only contract via a personal service company when it is absolutely satisfied that an individual should not be... ...self-employed".

So it appears that the BBC will now in some cases insist on contracting directly with the individual - perhaps running the risk of HMRC subsequently re-categorising the individual as an employee - in preference to what was presumably former practice of insisting on contracting through companies?

Finally, the BBC also says that it will be developing a new framework with HM Revenue & Customs for self-employed on-air presenters. HM Revenue & Customs does of course have its Employment Status Indicator tool; there are many advisers who have tested it, with varying success.