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I may need to elaborate here.Concept - agent reports a sale and gets rewarded. They are NOT our employees, they are employees of other companies.We reward them with cash onto a pre-paid card.We don't want them to have to deal with tax declaration but we want to deduct and pay for them
Right, you are effectively acting as a payroll agency. Any of the payroll packages, Sage is but one, will calculate the deductions for you and advise you of the amounts to be with held for Income Tax and National Insurance (NI). You will then pay the net sum to the employee, pay the deductions due to HMRC and receive from the organisation on whose behalf you are operating the wages to be distributed plus the employer's element of NI plus, of course your fee with VAT thereon, if appropriate.
You will have to undertake monthly on line real time returns to HMRC as well as an annual summary. If you are going to run payroll you have no alternative but to make tax declarations at intervals, but, of course, the good software packages do all this for you.
I don't have sage and don't want to run 'payroll'What are my options?Or is it simply a term 'payroll'Can I report monthly who I've paid and how much?I need to know UP FRONT the value % I am holding back or to add to a reward value so that it is fixed.E.g. £10 reward + X% tax to be added
or £10 less the % deductionI need to know this BEFORE we release and spend the money as we have to charge that to a client who we act for.
They are not my employees -they are third party employees.
Do I still have to run payroll for third party persons?
If I know the amount e.g. £10 - can I know the value of the tax implication?
Can I therefore opt to pay a flat 20% on any reward ?