My client is a director of a small limited company. She has been asked to give a number of lectures on a cruise ship, while at sea. The contract states she will be self-employed for the provision of services and is responsible for her own tax liabilities. It states what she is required to do in return for FEE plus accommodation and meals. Fee is stated at nil. So she receives a free cruise with accommodation and meals, but no excursions or drinks.
a) As no money changes hands, the fee is stated at nil, and she cannot sell on her free room, is anything taxable?
b) If so what value is taxable? (For example cruises have a top line brochure price but then most places are sold at discount.)
c) If taxable on some form of money's worth, given the lecturer doesn't know what class of cabin she will be given until she boards (and it won't be the best), which level should one use?
d) The speaker is allowed to bring one companion. What is the tax treatment of their part of the free meals and accommodation deal?
e) If this is properly taxable as self-employed income, what deductions can be claimed? (Travel from business base to the port? Subsistence (ie drinks) while aboard?)
f) As the speaker is a director is there any potential liability as employment income, even though contract says self-employed? If so, how valued?
g) Has anyone ever had an engagement like this specifically raised with HMRC, and if so how did it end? (In tears?)
Thanks for taking the time to read this. If you can only answer some points your views and experience would be appreciated.