Honoraria

By Tolley in association with Paul Tew
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The following Employment Tax guidance note by Tolley in association with Paul Tew provides comprehensive and up to date tax information covering:

  • Honoraria
  • When are honorarium payments appropriate?
  • Tax and NIC implications of honorarium payments
  • PAYE responsibilities

An honorarium is a cash payment made to an office holder for performing a service, which is voluntary in nature, often in a separate organisation. The payment has no contractual basis and usually the amount is small in comparison with the employee’s normal rate of pay for performing their employment duties.

When are honorarium payments appropriate?

Honorarium is an acknowledgement that an individual has been involved in certain activities not arising from their employment, and that, in relation to those activities, no other form of reward will be made. Payment is primarily made for two reasons, ‘to say thank you’ in recognition of the valuable service given and to ensure that a particular role is filled and / or the duties covered, eg qualified members of staff performing the role of a First Aider.

Honoraria

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