Charity is asking for tax reference number

[Sabrina91]

Hello
A friend of mine did some freelance job for an organisation registered as a charity.
The charity said it's not going to pay my friend unless they provide their tax references number.
By my understanding this is not necessary.
Need some advice.
Thanks
Sabrina

 

[Scalloway]

They may wish to to check your friend is genuinely self employed. An organisation can get into trouble for paying somebody who is not genuinely self employed and should have been on PAYE as an employee.
Although it is not standard practice I have seen self employed people quote their UTR on invoices.

 

[WaveJumper]

Did your friend actually submit a “proper’ invoice in the first instance

 

[Sabrina91]

Did your friend actually submit a “proper’ invoice in the first instance

Yes my friend submitted an invoice.

 

[Sabrina91]

They may wish to to check your friend is genuinely self employed. An organisation can get into trouble for paying somebody who is not genuinely self employed and should have been on PAYE as an employee.
Although it is not standard practice I have seen self employed people quote their UTR on invoices.

I don't know much about this. But I have several friend that are self employed. I have done a bit of research, my understanding is the self employed person is the one responsible to pay taxes. If something goes wrong they are the one liable.

 

[fisicx]

The charity is doing due diligence and making sure the recipient of the money is a tax payer. Even as self-employed their business will have a UTR of tax reference. Just tell your friend to pass on the necessary details. It’s not complicated.

 

[Sabrina91]

The charity is doing due diligence and making sure the recipient of the money is a tax payer. Even as self-employed their business will have a UTR of tax reference. Just tell your friend to pass on the necessary details. It’s not complicated.

Thanks. I will. It's just that you're not supposed to give the tax reference number. Maybe works differently for charities.

 

[Scalloway]

I don't know much about this. But I have several friend that are self employed. I have done a bit of research, my understanding is the self employed person is the one responsible to pay taxes. If something goes wrong they are the one liable.

HMRC may look at the circumstances regarding the work your friend undertook and decide they were really an employee and should have been on PAYE. I got caught out with this many years ago. Having a UTR helps show your friend is genuinely self employed.

 

[fisicx]

Thanks. I will. It's just that you're not supposed to give the tax reference number. Maybe works differently for charities.

Whilst the number shouldn’t be made public the reason for the request in this case is reasonable. Charities need to prove the money spent was legitimate. Hence the need for proof your friend does have a legitimate business and not doing the work off the books.