Can you pay someone in vouchers/incentives?

smokeybubbles

[FONT=&quot]Hi all,[/FONT]
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[FONT=&quot]Hope this is the correct forum. I run a small recruitment agency and a client has recently asked me to provide a panel of testers to, well essentially test products – they call it a consumer panel. [/FONT]
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[FONT=&quot]It involves building a panel (100+) dependant on specific requirements and then asking them for the relevant feedback etc., however my question is that looking at other providers I can see they offer vouchers and incentives rather than an hourly wage.[/FONT]
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[FONT=&quot]Currently I only payroll individuals via a wage and I am a little confused as to how you can pay someone, legitimately, with a voucher? [/FONT]
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[FONT=&quot]Our client is indicating this is common practice in these types of industries, which on researching seems correct, however how do these companies get around not declaring these payments on a P11 or checking right to work of the individual etc.?[/FONT]
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[FONT=&quot]Sticking to the letter of the law is paramount for me but I don’t want to lose a potentially big contract so if any could offer some advice it would be greatly appreciated. [/FONT]

01afraser4

Guidance at the following link might be a good starting point for you to consider:

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim16000

It may depend on the type of voucher or incentives they are receiving but there are various different examples.

If you take cash vouchers as an example: These are a voucher, stamp or similar that can be exchanged for cash, including premium bonds, postal orders or savings stamps. The amount of benefit is the sum of money the voucher can be exchanged for. The employer should then operate PAYE on the taxable amount when provided.