Q We are uncertain how to proceed when engaging casual labour.
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Could you please advise us whether there are any tax or insurance deductions which we should make when paying the sum of say f6.00, ex petty cash, for the hire of a daily casual driver?
We have been using drivers occasionally who are perhaps on a week's holiday from their firm or on a day's leave when on shV ?work, but in all eases their permanent employer has stamped their card.
ASo far as the tax position is concerned
you can either deduct income tax on a Code 1 basis currently or render a statement (P38) to your own tax office at the end of the financial year setting out the name and address of the person to whom you have made payment and the amount.
Where another employer has stamped the casual employee's card for the period during which he is employed by you, no liability for the insurance stamp lies with you. However, when no other employer is in
volved and the casual employee works for more than eight hours for you and earns more than £6 in your employ then you must deduct the appropriate amount and stamp his card.