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Q: If I take on temporary staff can I just pay them out of petty cash?

Aug 17 2005

Answered by: Marc Barber Ask a question

You might get yourself into difficulties with the Inland Revenue, which has got very keen on trying to catch all workers in its tax net. You will still need to deduct PAYE and National Insurance from what you pay them and give them a statement of pay and deductions. If you don't deduct tax and N.I., you may find that on a visit from the Inland Revenue, you have to stump up the tax and N.I. which your temporary worker should have paid.

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