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Volunteers Recognition Scheme

Tax implications?

A client in the leisure industry uses volunteers to help out with some maintenance of their site, for which the volunteers gain experience in return.

I've been asked what the implications would be of putting in place a reward scheme, recognising several milestones. To get it in context, the largest - say 500 hours - would earn a free 3-course meal at the venue for two.

Although it still seems pretty small change, I don't feel that I can conclude that it's sufficiently trivial in order to advise that there are no tax nor national minimum wages implications. 

Would you agree that it's not a good idea, and that something else - such as a bottle of bubbly at Christmas i.e. small and not tied to the amount of service given - may be more appropriate?

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27th Nov 2018 23:45

OT but how do they avoid spying minimum wage?

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to WhichTyler
27th Nov 2018 23:58

No idea - I do wonder sometimes if the volunteers mistake it for a charity rather than a privately owned business run for profit

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to the_drookit_dug
28th Nov 2018 09:06

I would say that paying minimum wage is more appropriate...

500 hours is a lot of work and if he's avoiding NMW, what is their approach to health & safety, insurance and other employer's responsibilities?

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28th Nov 2018 14:29

Very strange situation!

This is HMRC view on the NMW point:

https://www.gov.uk/hmrc-internal-manuals/national-minimum-wage-manual/nm...

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