Casual Workers
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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!
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!
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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
Steve0 -
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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