Former BBC Look North presenter, Christa Ackroyd has lost a legal battle with HM Revenue & Customs at the Royal Courts of Justice.
The ruling could have wider implications because of the way some presenters were paid by the BBC.
When Ackroyd left ITV Calendar for BBC Look North she was given a personal service company contract. This means that rather than being employed directly by the corporation, she was paid as a freelancer, with the money going to her own company, Christa Ackroyd Media Ltd. This meant that she was effectively self-employed.
The HMRC stressed that they were not and never had accused Ackroyd of either being a tax cheat or acting dishonestly.
Indeed, according to court documents, it was the BBC who suggested that this is how she should be paid. It was earlier ruled that the BBC hadn’t attempted to avoid income tax or National Insurance contributions by acting in this way and a spokesperson said that, at the time, it was “entirely legitimate and common practice” in the media sector.
What it means for Ackroyd is a potential tax bill of around £420k – a sum she disputes, suggesting it is nearer £207k.
The former BBC presenter said after the ruling that it had ended “5 horrendous years of innuendo and gossip” about her financial affairs.
