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Posted Fri, 24 Mar 2023 10:39:14 GMT by Billy garnett
Are there any National Insurance or VAT implications when making a payment to someone for speaking/ participating in an event our charity is holding. The speakers flight, accommodation and other related expenses are to be covered and there is a proposal to pay the participant what has been described to me as a modest "honorarium" or "stipend" of a few hundred pounds in recognition of them giving up their time to participate. This is voluntary payment that is not in return for a service and there is no contract for attendance and participation at the conference. Some of the speakers are domiciled overseas and some in the UK.
Posted Fri, 24 Mar 2023 14:19:14 GMT by HMRC Admin 2

VAT becomes applicable if a supply is made for a consideration. If a person is participating/speaking at an event then this would normally construed aa a supply and the 'consideration' would be the payment they receive.

If the speaker is overseas then this would come under the general rule of services, which would mean that as long as you are a business, then no VAT would be charged and the supply would be subject to the reverse charge procedure.

Place of supply of services (VAT Notice 741A)

If the speaker is in the UK and is VAT registered then normally VAT would apply.

However we would recommend contacting our charities team for further advice, as there are special reliefs for charities in relation to VAT.

Thank you.

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