Referral Fee's

Discussion in 'Accounts & Finance' started by Robert74, Feb 2, 2012.

Thread Status:
Not open for further replies.
  1. Robert74

    Robert74 UKBF Newcomer Free Member

    43 0
    How do you a pay a referral fee to someone that is not an employee.

    We recently took on a new member of staff that was recommended to me by another non member of staff.

    I have said we will pay a £250 referral be have no idea of the tax implications. Should it just come out of my personal pocket?
     
    Posted: Feb 2, 2012 By: Robert74 Member since: Jan 14, 2009
    #1
  2. Import Expert

    Import Expert UKBF Regular Free Member

    345 137
    I guess doing it by the book they could 'invoice you', or just take it out of expenses as part of HR costs ?
     
    Posted: Feb 2, 2012 By: Import Expert Member since: Feb 1, 2012
    #2
  3. weebly_one

    weebly_one UKBF Regular Free Member

    441 66
    When I pay referral fees to other companies I ask them to invoice me so there is no obligation on my part for it being a personal payment.
     
    Posted: Feb 2, 2012 By: weebly_one Member since: Feb 26, 2009
    #3
  4. Muffiee

    Muffiee UKBF Contributor Free Member

    67 10
    Get him to invoice you and he can take care of the tax he owes hmrc via self assess
     
    Posted: Feb 2, 2012 By: Muffiee Member since: Jun 26, 2010
    #4
  5. Richie N

    Richie N UKBF Big Shot Free Member

    4,039 486
    Pay it via PAYE or maybe suggest vouchers of some sort?
     
    Posted: Feb 2, 2012 By: Richie N Member since: Nov 1, 2006
    #5
  6. internetspaceships

    internetspaceships Banned Full Member

    6,981 2,330
    How can he pay a non member of staff by PAYE? That's a long way round doing it when he can be invoiced.

    Vouchers? How do you account for those properly on the books?
     
    Posted: Feb 2, 2012 By: internetspaceships Member since: Sep 7, 2009
    #6
  7. Richie N

    Richie N UKBF Big Shot Free Member

    4,039 486
    Sorry I read the thread too quickly and didn't realise the referral came from an outsider ;)
    In that case, an invoice is the best solution.
     
    Posted: Feb 2, 2012 By: Richie N Member since: Nov 1, 2006
    #7
  8. internetspaceships

    internetspaceships Banned Full Member

    6,981 2,330
    No worries Richie, I thought that might have been the case mate.
     
    Posted: Feb 2, 2012 By: internetspaceships Member since: Sep 7, 2009
    #8
Thread Status:
Not open for further replies.