Tax Obligations for Referral Payments

Hello, If a company is a VAT-registered business established in the Netherlands and pays referral fees to individuals in the UK, we would like to confirm whether the company is required to withhold and declare taxes on these referral payments made to individuals or entities within the United Kingdom. Additionally, are there any tax liabilities arising from these referral payments?

Hi,
Please contact us on the number shown on the link here: Employers: general enquiries to discuss this in more detail.
Thank you

We would like to add that the Dutch company is not registered in the UK, has no employees there and all amounts paid are to persons not related to the company. Those individuals are not engaged in any individual intermediary activities; they simply receive compensation from our company for meeting certain conditions. This could potentially be treated as a prize. The main question we have is whether the individual receiving the bonus is responsible for paying the tax themselves (probably income tax), or if our company needs to complete any forms and withhold taxes on behalf of the individual.

Hi,
What we need to be clear about is whether or not there is a contract of service, employment contract, existing between you and the individual based in the UK. If there is, then PAYE would normally need to be operated. If there is not, PAYE would not need to be operated and the individual would be responsible for any tax and National Insurance contribution obligations.
You may wish to contact our Employers team for advice.
Employers: general enquiries
Thank you.