Contractors win apology from BBC

One day after the PCG announced the legal challenge to the Government over the IR35 regulations, independent contractors are up in arms over the Newsnight coverage of the issue, accusing the Treasury of censoring and 'spinning' the coverage for the flagship BBC news program.

Angry contractors threatened to jam the BBC switchboard, make an official complaint to the Broadcasting Complaints Authority and e-mail their views to the Corporation. But following recent negative coverage, where other media companies have accused contractors of organised "e-mail bombings" many contractors held back. But sufficient numbers did contact the BBC and visited the Newsnight website. The main complaint was that such a serious issue was given so little coverage, with the story leaving viewers with the impression that IR35 is simply a matter of the Revenue closing a "tax dodge" loop hole.

The program made a 'comparison' of the tax position of an employee and a PSC, suggesting that top employees pay 52% tax (40% income and 12% NI) compared to Ltd Companies that pay just 10% corporation tax.

The independent contractors have won an apology from Newsnight. More importantly, the program will re-open the issue and has promised more comprehensive coverage in tonight's show.

Yes, we did get it wrong last night. Our Economic Editor completely misunderstood something he was told by the Inland Revenue and thought there were some people who did face a 52% versus 10% tax benefit from making themselves a small company. He is busy writing a thousand lines as we speak, and will correct it on tonight's programme.

See BBC Newsnight apology