Under Section 16, Taxes Management Act 1970, HMRC is entitled to ask for details of payments to non-employees at their discretion; but they would not routinely ask for details for small payments such as those described on the previous page. However should the sums paid exceed those reasonable expenses then the excess may fall to be chargeable to tax as Miscellaneous Income, potentially giving rise to personal tax liabilities of the individuals which should be notified to HMRC under Self Assessment Procedures (see ) which is the mechanism whereby other sources of income are declared e.g capital gains, dividend income and interest income. TEACHING, LEARNING, COMMUNITY ENGAGEMENT and ALL OTHER PUBLIC INVOLVEMENT ACTIVITY No specific agreement exists with HMRC. Tax consequences be determined under employment status rules. If the individual completes no more than three sessions a year, it is unlikely that an employee/employer relationship exists. In this instance public can be paid outside of the payroll system. If the individual completes more than three sessions a year, advice should be sought from the Payroll Section as to their employment status. Payroll staff will advise based on such things as frequency of involvement, nature of the activity and payment rate. HMRC have advised that even when the sums are paid outside the payroll system, the onus is on the individual to determine if they need to declare the income as earnings. Where the sums paid do no more than reimburse the individual’s reasonable costs, including costs of travel and subsistence, it is unlikely that this would be treated as taxable income. However the individual is responsible for making this judgement. Payment Processes There are two approaches to payment depending on whether the person’s contribution is viewed as A) paid work or B) not paid work. Paid work PAYROLL SYSTEM If the member of the public is required (as has employment status - see page 8 for circumstances) or wishes to be paid through the payroll system for ease, the following procedure should be followed:
National Institute for Health Research, North West Research Design Service – Bursary scheme. See J (2008) Payment for involvement in research: helpful benefit rules and systems for avoiding benefit problems, INVOLVE. See VInspired – VInspired is a charity that connects young people to volunteering opportunities. See Appendix 4 Payment examples Research/ Teaching & Learning/Engagement Type of Volunteer Type of Assistance Offered Frequency Payment Amount and Type Teaching & Learning P&O Patients/Private Patients Act as models to allow students to practice making prosthetic limbs. Once a term £65 per 3 hour session and 40p per mile mileage Research Patients with diabetes and health volunteers Gait lab measurements 2-3x £20 Amazon voucher Research Health controls (as part of knee oa Gait lab measurements 1x £20 Amazon voucher Research Clinical study volunteers Study 1: Foot treatment efficacy tests. Four visits lasting one hour for each participant £20 high street shopping voucher. Also receive free treatment and podiatry treat at the
whom are retirement age. Engagement Twelve adults, some of retirement age. Public involvement in an education forum (engagement). Once a semester. Rewarded for participation in an hour-long interview with £15 high street vouchers each. Research Young people Research study exploring health needs of seldom heard young people aged 16-20 (some at school, college and unemployed). One off Reward as a £10 high street voucher each for input into the study. Thanks made by a celebration cake and party at project end. Engagement Two retired adults College Listening event-service users give a presentation at a conference-style event. Once a year Reward was £150 each in cash plus travel costs reimbursed in cash on the day. Teaching & Learning Disability Activist Disability activist was paid to come in to give a lecture to my Social Policy and differentiation class this semester Once a year At lecturing rate (£34/hour or thereabouts Teaching & Learning Diabetic patients 2 patients from Salford Diabetes Care Forum come twice a year for one hour to lecture to our student nurses on patient experiences of Diabetes Twice a year £34 each for each session Teaching & Learning/Research Various Paid hourly lecturing rates for t&l for user/carers one off talks to our students in modules Various Small value vouchers Teaching & Learning/Research Various Attend either for a talk, meeting, reading materials and commenting upon, workshops for t& l matters in the school, focus groups etc Various Small value vouchers Participation Students Student volunteers at open days and offers open days are given vouchers, usually high street or Waterstones to value of around £20 a go Once or twice a year £20