Referral Fee's

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?

 

I guess doing it by the book they could 'invoice you', or just take it out of expenses as part of HR costs ?

 

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.

 

Get him to invoice you and he can take care of the tax he owes hmrc via self assess

 

Pay it via PAYE or maybe suggest vouchers of some sort?

 

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?

 

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.

 

No worries Richie, I thought that might have been the case mate.