I have a client who makes ex-gratia payments to a number of collaborators who periodically provide him with particular statistics. He processes this data as part of a Service which he then sells onwards. He doesn't employ these collaborators and he has no contractual obligations to them at all - nor they to him - but the arrangement just works.
When accounting for these ex gratia payments, would it be best to chose a Casual Wages NC (7005) or, as it is critical to the Service, would it better be described as a Direct Expense (NC 6001)?
As long as he keeps records of who he pays and ideally they provide invoices no it does not matter.
But I would NEVER put it into casual wages. By using that code, you are telling everyone that they are WAGES and the payment should be against a payroll as wages are paid to employees! Can you set up a a nominal code so its with the direct expenses section called say "Statistical consultancy" ?
