When does a payment of fees become employment?
Discussion
Say a church holds three services a week and it pays it speakers £60 a time. Over time one speaker (who is a full time employee elsewhere) becomes very regular and is speaking ten times or more a month. At what point does the church need to consider itself an employer of that person and start paying Employers NI etc?
Does/can the speaker do similar paid work for other people?
If so, he/she is very likely to be self-employed.
More on this link,
http://www.litrg.org.uk/tax-guides/self-employed/a...
If so, he/she is very likely to be self-employed.
http://www.litrg.org.uk/tax-guides/self-employed/a...
Ossiantoad said:
Say a church holds three services a week and it pays it speakers £60 a time. Over time one speaker (who is a full time employee elsewhere) becomes very regular and is speaking ten times or more a month. At what point does the church need to consider itself an employer of that person and start paying Employers NI etc?
Employee at his full time jobSelf-employed at his church job
The main different in this context IMHO is:
Employee gets paid net so doesn't have to worry about tax; he can trouser the lot.
Self-employed gets paid gross so HE has to worry about tax.
The frequency or level of payment does not on its own determine whether someone should be treated as an employee or as a self-employed (i.e. trading) individual. The situation has to be reviewed "in the round".
HMRC provides this checklist which may or may not help -
http://www.hmrc.gov.uk/manuals/bimmanual/bim20205....
HMRC provides this checklist which may or may not help -
http://www.hmrc.gov.uk/manuals/bimmanual/bim20205....
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