By . James Chapman and Sam Greenhill . PUBLISHED: . 18:04 EST, 25 October 2013 . | . UPDATED: . 18:04 EST, 25 October 2013 . The BBC is on a collision course with some of its highly-paid presenters over the freelance contracts that can enable tax bills to be reduced. It told the Government that it would move within weeks to phase out the contracts, which allow workers to register themselves as ‘personal service companies’ and be taxed as companies and not individuals. But more than 6,000 freelancers are involved and the corporation is said to be struggling as it seeks to unravel the complex ways in which stars are paid. Tax row: Newsnight's Jeremy Paxman and newsreader Sophie Raworth are among those rumoured to be paid through 'personal service companies' The corporation has pledged to end the paying of stars – reported to include Newsnight’s Jeremy Paxman and newsreaders Fiona Bruce, Joanna Gosling, Emily Maitlis, Gavin Esler and Sophie Raworth – through ‘personal service companies’. It is thought that forcing them on to the staff pay roll might mean an effective pay cut of between 10 and 20 per cent. There is no suggestion that any of the individuals named have acted improperly but  MPs accused the BBC of having ‘staggeringly inappropriate’ arrangements in place for many employees and said it could be ‘complicit’ in tax avoidance. MPs accused the BBC of having 'staggeringly inappropriate' arrangements in place for many employees and said it could be 'complicit' in tax avoidance . This is because the rate of corporation tax – which companies pay on profits – is lower than the income tax that high-earning individuals face. Rod Liddle, the former editor of Radio 4’s Today programme, said staff were in ‘open revolt’. Rod Liddle, the former editor of Radio 4’s Today programme, said staff were in 'open revolt' ‘The BBC is in deep trouble,’ he added. ‘Right now its top presenters are all out of contract because of the concerns that some of them used private companies to squirrel away their dosh.’ To buy more time, the corporation is reported to be busy ‘extending’ and ‘continuing’ contracts. ‘Every presenter is different,’ said a source. ‘Many of them do different kinds of work. It is not about people refusing. 'The BBC have announced something that has turned out to be very difficult.’ The corporation identified 124 top names earning £150,000 a year or more via companies. But some, including Paxman, said they were ordered to do so by BBC managers. A BBC spokesman said: ‘The BBC has developed a new employment test ... that uses several criteria to determine whether an individual can be hired as self-employed or considered as an employee. 'We will soon be in a position to begin applying this test.’
BBC pledges to end paying of stars through 'personal service companies'
But it is said to be struggling to unravel the ways in which stars are paid .
Former Today programme editor Rod Liddle, said staff were in ‘open revolt’
By . James Chapman and Sam Greenhill . PUBLISHED: . 18:04 EST, 25 October 2013 . | . UPDATED: . 18:04 EST, 25 October 2013 . The BBC is on a collision course with some of its highly-paid presenters over the freelance contracts that can enable tax bills to be reduced. It told the Government that it would move within weeks to phase out the contracts, which allow workers to register themselves as ‘personal service companies’ and be taxed as companies and not individuals. But more than 6,000 freelancers are involved and the corporation is said to be struggling as it seeks to unravel the complex ways in which stars are paid. Tax row: Newsnight's Jeremy Paxman and newsreader Sophie Raworth are among those rumoured to be paid through 'personal service companies' The corporation has pledged to end the paying of stars – reported to include Newsnight’s Jeremy Paxman and newsreaders Fiona Bruce, Joanna Gosling, Emily Maitlis, Gavin Esler and Sophie Raworth – through ‘personal service companies’. It is thought that forcing them on to the staff pay roll might mean an effective pay cut of between 10 and 20 per cent. There is no suggestion that any of the individuals named have acted improperly but  MPs accused the BBC of having ‘staggeringly inappropriate’ arrangements in place for many employees and said it could be ‘complicit’ in tax avoidance. MPs accused the BBC of having 'staggeringly inappropriate' arrangements in place for many employees and said it could be 'complicit' in tax avoidance . This is because the rate of corporation tax – which companies pay on profits – is lower than the income tax that high-earning individuals face. Rod Liddle, the former editor of Radio 4’s Today programme, said staff were in ‘open revolt’. Rod Liddle, the former editor of Radio 4’s Today programme, said staff were in 'open revolt' ‘The BBC is in deep trouble,’ he added. ‘Right now its top presenters are all out of contract because of the concerns that some of them used private companies to squirrel away their dosh.’ To buy more time, the corporation is reported to be busy ‘extending’ and ‘continuing’ contracts. ‘Every presenter is different,’ said a source. ‘Many of them do different kinds of work. It is not about people refusing. 'The BBC have announced something that has turned out to be very difficult.’ The corporation identified 124 top names earning £150,000 a year or more via companies. But some, including Paxman, said they were ordered to do so by BBC managers. A BBC spokesman said: ‘The BBC has developed a new employment test ... that uses several criteria to determine whether an individual can be hired as self-employed or considered as an employee. 'We will soon be in a position to begin applying this test.’
involved and the corporation is said to be struggling as it seeks to unravel the complex ways in which stars are paid. Tax row: through 'personal service companies' The corporation has pledged to end the paying of programme, said staff were in ‘open revolt’. Rod