If i pay a freelancer is this tax deductible?

[bloomfield]

Hi

Setting up a new business and i am using a freelance photographer for some publicity shots

He wants £300 for the day which seems reasonable

Question is, is this tax deductible, there is no PAYE of course because it's a one off . The HMRC web site isn't clear whether the cost of a 'person' can be offset against tax

Also i assume he will have to invoice me ?

Thanks in advance

[pjclar02]

Hello there

Provided the expense is "wholly and exclusively" for the purpose of your business then this is a tax deductible expense. Yes - you should get an invoice from the photographer to put on your files.

[mullet]

there is no PAYE of course because it's a one off

Right result but wrong reasoning. Whether or not a payment is one-off can have an effect on PAYE (particularly regarding the payment of casual workers) but it is not the one-off nature of this payment which would keep it outside the PAYE system. The reason for paying such a worker gross on production of an invoice would be because he was working under a contract for services rather than a contract of service.

Quote from Directgov: If you have a ‘contract to provide services’ or a 'contract for services' with someone, then this is different from an employment contract and generally means you are self employed. A contract to provide services is an agreement between you and another person to undertake some work for them (for example paint their house). You do not become an ‘employee’ for this person - you just provide them with a service.

[King_Maker]

Yes, it's deductible.

Yes, he should invoice you.