HMRC regulations - one off payment

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cazmarb
cazmarb Registered Posts: 23
in General accounting discussion
At work someone agreed to pay 2 people £50 each as a one off payment for helping out on a D of E expedition. They are not employees. Would I need to get them to fill out starter checklists and put them through the payroll even though they won't be used again or could I ask them to invoice us and they sort out the tax implications. Could gift vouchers be given or would they need to go on a P11D?

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  • cazmarb
    cazmarb Registered Posts: 23
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    They are employed elsewhere. They were told that we would pay them without any thought about tax implications. I’m trying to find the easiest way to sort this out that is in keeping with regulations
  • MarieNoelle
    MarieNoelle Registered, Moderator Posts: 1,368
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    If they are not employees, nor related to current employees, and assuming the service they provided didn't fall within the scope of employment, I don't think the payment is taxable through PAYE as earnings.

    Was there an expectation of receiving £50? You say "someone agreed to pay" so it's not clear whether this sum was agreed in advance. This link may provide answers on how to treat the income received https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim100110

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