I am returning to pensions in our sound bite with, “ How to boost your pension and save tax at no additional cost”. But first, What do you make of all this stuff about the BBC’s payments to it best-known presenters? I think there are many issues around the disclosure and thought it worth some exploration.
What is the market rates for celebrities?
What is the market rate for what they do? After all, being a news reader is just the ability to read aloud and not laugh at funny names. But, it can be hard to put a value on celebrity status. What would Sky and others pay in the same situation? What is a fair rate for fulfilling that role?
But let’s consider Top gear.
It a global brand and worth millions to the BBC commercial. It is a good example of presenter value, as Clarkson May and Hammond had become true celebs. Once Clarkson hit a producer ( there are some that say he did it to get out of the contract), he had to go, and the others followed. The new team have yet to get close to the former presenters viewing figures. So what is the value of these celebs? The same can be said for professional football players. So, why single out the BBC?
Salaries are about negotiation
Just as in every company up and down the country, these presenters negotiated the deals with their employer, (the BBC) in good faith and deserved confidentiality. If there was a problem, the BBC should have resolved this internally at the end of the current contract.
The question of equal pay is the real hot potato. There seems to be a distinct disparity between rates but we have just seen Wimbledon, and the male and female prize money is very different. Why does the BBC have to comply but Wimbledon does not. Of course, Wimbledon is a private organisation and can pay as it chooses. But pay gaps are looking increasingly indefensible. I don’t think that I will suggest that my fellow (female) director gets paid less than me. I imagine there will be a few awkward conversation at the BBC, particularly where colleagues holding similar positions have huge pay disparity.
What was the agenda?
This disclosure has been forced upon the BBC by the government. I wonder what their motives were and what will be the fallout from this intervention (or is it interference). Will other companies now attempt to poach some of the well-known names from the BBC, partly due to salary rates but also to avoid embarrassing disclosure like this in the future?
Will the disclosure push many of our best-known presenters to either take pay cuts, leave or get pensioned off? I am sure the pension packages could be quite good as well. Which brings me nicely to talk about pensions.
How to boost your pension and save tax
Somebody said to me yesterday, don’t get old, but here we are talking about pensions and being pensioned off. This may not sound like a particularly interesting subject but actually what I have to say this week is quite exciting. Remember, I am an accountant, and it does not take much to get me excited. How to boost your pension and save tax does it for me and I think you will like this!
As ever, any thoughts or questions on other aspects of tax planning, please call or email.
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Slaying your tax dragons and making life less taxing!
The Long Partnership
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