My client has used an agency for a person doing admin in the office and the same person has worked 16 hrs a week for 7 years via the agency. They are now terminating this agreement and taking on someone full time on PAYE. However they want to make a payment of £1500 to this worker as a token of their appreciation and the agency say they are unable to process such a transaction. As this person does not have a contract of employment with my client, we cannot process under PAYE and I am concerned that if we just write a cheque for £1500, what the tax implications would be.
Anyone any suggestions as to how to make this £1500 to someone employed via agency???????