dionaeamuscipula wrote:Hariseldon58 wrote:How about a rebate against the handyman’s service charges, in lieu of payment.
It avoids the paperwork....
HMRC would consider that income just as if he was paid cash, if they ever found out.
There are definitely ways to structure such arrangements so that there is technically no employment, no contract and no payment, and therefore no taxable liability. Two examples that I have personal experience with:
1) We sent our children to a private school. That school had a scheme whereby if parents volunteered a minimum amount of time per term for "useful" skills, then the school fees were lowered or waived. My wife provided time running the medical office there, and organising various functions, events and fund raisers. Some years we didn't pay any fees at all as a result, and there was no tax issue. Schools are free to waive fees in various situations e.g. for academic high-achievers, for special needs children, for the children of teaching staff or major benefactors, and so on. About 25% of the parents there paid no or reduced fees and nobody ever suggested that that value was taxable.
2) Back when I was a landlord I had one large multi-unit building that was some distance from where I lived, and therefore difficult for me to manage. I offered one of the rental units at a low rent in return for an informal arrangement whereby the tenant acted as handyman and generally looked after the building. Again no tax liability was assessed - after all, landlords and tenants are free to agree any rent that they want.
I believe the critical factor is the lack of a formal contract or relationship.