Casual Workers

System
System Posts: 100,537 🤖 Admin 🤖
edited June 9 in General accounting discussion
A client of mine who owns a bridal shop has asked a few friends to model bridal wear on a catwalk at a wedding fare next month. She wants to give them some jewelery from stock instead of paying them for the work.
Can anyone help me as to the tax treatment of this please?
I'm hoping that I can class the models as employees as they are working for some form of payment, but that as they are earning under 8.5k that they won't be taxed on the value of the jewelery as a benefit in kind. Is that right? If so would the models need to complete P46s (or will they be excluded from this as they're working for less than a week?). Is there anything else that would need reporting?
Thanks!

Comments

  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Casual Workers

    Have a look at this link to see if it will help you:

    http://www.paypershop.com/news-cat/payrolltips131.html

    Kind regards
    Steve
  • System
    System Posts: 100,537 🤖 Admin 🤖
    Re:Casual Workers

    Thanks steve, that's the best summary for casual labour i've read & it was very helpful.

    I've phoned the Chroner helpline about paying the models with stock and, in case anyone else come accross this, it gets quite complicated. Firstly you need to account for the profit you would have made had the stock been sold, and, secondly, in my case as the models would only work for one day, the value of the stock would have to be multiplied by 365 and if this figure came to over £8500 then it's classed as a taxable benefit in kind and will need to be reported accordingly.

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