I have recently taken on the independent examinaton of a small club. The new treasurer and I have started to discuss the treatment of payments of honoraria to some of the officers, and we are keen to ensure we are correctly processing the payments. The payments are generally to cover expenses of the officers, although there is no expense process, it is purely to compensate the officers for out of pocket travel, working from home costs, etc.
Does the club need to process the honoraria payments via PAYE or can these form part of an expenses system, i.e. as a use of home expense, or following some other formal expense system, such as mileage, travel ,etc? Or would it be possible to ask the officers that receive honoraria payments to sign a confirmation that they will declare the income and pay any appropriate tax?
I have tried to look into this in more detail elsewhere, but there is little information regarding honoraria payments to officers - the examples available only seem to refer to officers that are clearly employees, however, I am not sure the officers of this club would be considered employees as there is no employment contract.
Any guidance or experience of others in this area would be greatly appreciated.