Hello,

Just a quick query - if someone is doing occasional work for a retail company, (not under any sort of contract, just as they want to and as the work is available really so they are not 'employees' as such, more working on a freelance basis) and being paid in store credit rather than cash, should this be liable for any sort of tax?
Does it count as 'income' with respect to PAYE/NI?
If they are on any sort of benefit could this affect their payments if they are means tested?

It is not a cash payment, the only thing they can use the store credit for is to buy things from the company, not at any discount.
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Yes this is still taxable.
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Goods supplied to employees are taxable as are goods used for the owners personal use. If the value of the goods supplied is below the paye threshold limits for income tax and national insurance then the effect will be limited as you may not be breaching the paye rules yourself. But you would need to keep a record of the employees and payments made albeit in the form of credit.

The effect on the employee benefits would depend on the benefits and number of hours worked and value of the goods received etc., But essentially this is something for that employee to sort out themselves.
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