Freelancer or employee? Public accounts committee urges public sector review

How should finance departments ensure that the freelancers who work for them pay enough tax? Which organisations have significant numbers of employees who don’t pay tax at source? The Public Accounts Committee has recently expressed concerns about the BBC in particular, and other bodies with high numbers of staff apparently in this situation. In an article on the Accountancy Age website, more details are given of the number of employees who work this way and other bodies that the cross-party committee may want to investigate including the NHS and local government. Margaret Hodge MP, chair of the committee, explained that the scrutiny was to ‘show leadership in the fight against tax avoidance’ and that "those whose income is derived from monies raised through taxation have a particular obligation to make sure that they do not use tax avoidance schemes." For more on the review read the full article at http://www.accountancyage.com/aa/news/2214799/mps-shocked-by-bbc-tax-arrangements#ixzz28hcdiJzv