Treatment of one-off payments to non-employees

Treatment of one-off payments to non-employees

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If a business (let's say a publishing/events business) has speakers at its events, contributors to its publications, or similar non-employees who are not self employed but do or provide something for the business, and it wants to compensate them, how should they be handled by the business? Is an invoice required in order to deduct it against profits? Or do they even have to temporarily go onto the payroll?

As a connected and perhaps more extreme example, how does someone who "sells their story" to a newspaper handle things? If the paper pays them £10000 for a story, do they have to go on to the paper's payroll? Do they send an invoice to the paper? Or is it the fact it's a once-off non-employment type situation allow them to simply add it to "other income" on their tax return?

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By User deleted
09th Oct 2015 16:02

Why would you put them on the payroll? Is your solicitor or accountant on the payroll?

You make payments gross unless the law requires otherwise. The recipient treats the receipt for tax purposes in whatever way is appropriate to the specific circumstances.

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By iamtrainee
10th Oct 2015 00:15

Invoice yourself with their name and address etc
and let them worry about reporting it to the hmrc this income as everybody is responsible for their own tax affairs...
You just need to have trackable information about the payee in this case

I am Trainee I am always wrong

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By Anthony123
12th Oct 2015 08:52

I think this answers your question

Look at BIM 100110

(for whatever reason today I cannot post the link).

 

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