HMRC has often paid attention to those who, should be “employed” by their paymasters instead of giving their services on a “self-employed” rate. This is because varying tax treatment applies.

If a beater’s salary should be “earnings from employment” in that case it should be subject to PAYE and National insurance. This process might be tedious for both the individual as well as the shoot and will attract fees and penalties if not carried out appropriately. Beaters and the shoot will wish to avoid this.

Fundamental tax requirements

An Employer need to operate PAYE as well as National insurance with respect of all employees. This contrasts with a self-employed person who must account for their very own tax as well as National insurance to HMRC under Self Assessment.

PAYE can easily entail extensive registration, regular payments to HMRC, processing deadlines and charges for wrong or late reporting. There should also be both equally employers plus employees’ National insurance contributions to administer. Therefore, where possible, it is not surprising that beater (plus the shoot) would prefer the beater be treated as self-employed to prevent the troublesome PAYE burden.

HMRC would likely of course prefer the majority of men and women to be treated as “employed”. National insurance contributions will also be greater along with expense claims tend to be more restrictive for the “employed” man or women.

HMRC approach to beaters

Within HMRC’s ongoing mission to squeeze the taxpayer further - the beater/shoot relationship has not gone unnoticed.

The work status and technique of remunerating a beater must be established by whether the individual is a ‘casual beater’ or perhaps not.

A ‘contract’ between a casual beater and a shoot is to be regarded as one of service (“employment”) and therefore the usual PAYE requirements must apply. Nonetheless, HMRC acknowledges that practical issues may occur whenever employers should operate PAYE for brief arrangements on small sums. Thus HMRC have decided that beaters can usually be treated as everyday casuals as well as taxes doesn't need to be deducted provided:

i) The beater is employed for a time period of up to a day along with the employment ends that day with no arrangement for additional work

ii) The beater is paid off in cash at the end of that working day

To ensure that the employment does indeed cease in the very same day, there can be no agreements set up to carry on the services beyond that point. But the same beater can be used by the same shoot again in the future. If there was an agreement (implied or formal) regarding future services then this could be a ‘contract’ and PAYE obligations would come into force.

It's very helpful to realize that if HMRC do assess a beater as being currently employed, it does not routinely entitle the “employed” beater to the related privileges of employment for example vacation or even sick pay. HMRC determination is only appropriate for their collection regarding taxes and National insurance purposes.

An additional caveat towards the above ‘casual’ treatment is that it isn't going to apply to National insurance. The employer (the shoot) will still therefore have to deduct employee’s National insurance and pay employer’s NI if the minimum NI threshold is surpass (£97/wk).

Additional obligations

Also, any kind of operated shoot will still be expected to keep records of all paid beaters’ earnings, names as well as addresses. Also beaters ought to keep records of revenue received and paid.

As a result of specialist nature of beaters as well as many other countryside professions, seeking professional advice is always suggested.

Resources

The writer knows loads about taxation doing work for Price bailey certified as a Chartered Accountant in 2006 and as a Chartered Tax Adviser in 08. The article author also has experience with VAT for shoots and has recently succeeded in a case against HMRC relating to registering a local syndicate shoot for VAT purposes.