So, a small client has a couple of interns in two days a week as part of a college course. One particular student has said that they are finding the "unpaid" element very difficult and are considering giving up their college course. This particular student is very promising, and the client feels that it would be a shame to lose them to the profession. What "allowances" could the client pay them (maybe travel and lunch to a "reasonable" amount ?) but how much is "reasonable", and if they go above that, how do we treat (PAYE payroll or not...?)
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Your client has two part-time employees and wants to know what to pay them? The following link is likely to be helpful.
https://www.gov.uk/national-minimum-wage-rates
If you don't think that link is helpful to this particular situation perhaps you could explain why you think it doesn't apply.
Your client has two part-time employees and wants to know what to pay them? The following link is likely to be helpful.
https://www.gov.uk/national-minimum-wage-rates
If you don't think that link is helpful to this particular situation perhaps you could explain why you think it doesn't apply.
I thought that initially but there are, apparently, exceptions. Why not just do the decent thing and pay then NMW for their 2 day week?? Wouldn't cost a fortune.
Is anyone able to point to the exceptions that allow interns as voluntary workers?
Sounds like a system that is wide open to abuse so I'd be interested in knowing what limitations there are on classifying someone as an "intern". The fact that the OP asks about "allowances" rather than asking if wages can be paid to interns reinforces that view somewhat.
Is anyone able to point to the exceptions that allow interns as voluntary workers?
Sounds like a system that is wide open to abuse so I'd be interested in knowing what limitations there are on classifying someone as an "intern". The fact that the OP asks about "allowances" rather than asking if wages can be paid to interns reinforces that view somewhat.
This is what I found but it's not as clear as you might hope.
Thank you for that.This is what I found but it's not as clear as you might hope.
As you say, not very clear. Sadly an all too common theme on gov.uk "guidance" these days.
But, even with that in mind, is the client getting valuable work out of the interns? If they are (and the fact that the question is even being raised indicates they are) then surely NMW is the way to go. Otherwise the client is exploiting a loophole to get free workers. I'd feel ethically uncomfortable about that, even if the legal position is fine.
As has already been said, the intern having another job is a red herring. They are currently receiving nothing so anything they get paid (even if subject to BR tax) is going to be an improvement for them.
Good link
But as always reliant upon HMRC view, which is regularly wrong but does confirm not worker in this case
The national minimum wage applies to employees, interns are voluntary workers.
Still, I agree the solution is to just pay them wages, if they're otherwise students with no other job then there's no real tax consequences to speak of.
I have endless requests from people wanting work experience, and will work for free.
Result is I now have two more employees that I pay just above NMW at highest rate.
Never yet managed to add their time cost to a real bill
The opposite
My time spent on jobs is increased when they are involved.
However I suspect that they have no idea of the business reality and think they are really working
Both chose to be furloughed for three months on shielding and no school. I got more efficient in that period, they became deskilled in that period
BUT we like them both and accept the position