Getting pay right is one of the most important responsibilities an event organiser has. Paying staff incorrectly can result in penalties from HMRC, claims from workers, and reputational damage that makes future recruitment difficult. The events industry, with its mix of employed staff, freelancers, casual workers, and volunteers, presents particular challenges. This guide covers the key principles and obligations you need to understand.
Note: Tax and employment law are complex and change regularly. This guide provides general information to help you understand the landscape. It is not a substitute for professional advice. Consult a qualified accountant or employment lawyer for guidance specific to your circumstances.
National Minimum Wage and National Living Wage
The National Minimum Wage (NMW) and National Living Wage (NLW) are legal minimum rates that employers must pay. The NLW applies to workers aged 21 and over, while the NMW applies to younger workers at lower rates. Rates change annually each April. Check gov.uk for the current rates, as using outdated figures can put you in breach.
Common pitfalls for event organisers include failing to account for unpaid time such as briefings, training, and waiting time, which all count as working time and must be paid at least at the minimum rate. Deductions for uniforms, equipment, or accommodation can reduce effective pay below the minimum, which is unlawful. "All-inclusive" day rates that, when divided by actual hours worked, fall below the minimum are also a breach. Travel time to a temporary workplace (as opposed to a permanent base) may count as working time in certain circumstances.
HMRC enforces minimum wage compliance actively and can issue penalties of up to 200% of the underpayment, along with naming and shaming employers who breach the rules. The reputational impact alone makes compliance essential.
Employment status: employed, self-employed, or worker
Before you can determine how to pay someone, you need to understand their employment status. UK law recognises three categories that are relevant to event staffing.
Employee
An employee works under a contract of employment. They are subject to your control regarding what they do, when they do it, and how they do it. They are obliged to turn up, and you are obliged to provide work. As an employer, you must operate PAYE (Pay As You Earn), deducting income tax and National Insurance contributions from their pay. You must also pay employer's National Insurance contributions, provide a written statement of employment terms, and comply with employment rights legislation including holiday pay, sick pay, and pension auto-enrolment.
Worker
A worker is someone who provides services personally under a contract but is not an employee. Many casual event staff fall into this category. Workers have fewer rights than employees but more than self-employed individuals. They are entitled to the National Minimum Wage, paid holiday (5.6 weeks pro rata), rest breaks, protection from discrimination, and pension auto-enrolment if they meet the earnings threshold. You must operate PAYE for workers, just as you do for employees.
Self-employed
A genuinely self-employed person runs their own business, takes on financial risk, can send a substitute to do the work, uses their own equipment, and is not under your direct control regarding how they carry out the work. Self-employed individuals invoice you for their services, and they are responsible for their own tax and National Insurance through Self Assessment. You do not operate PAYE for genuinely self-employed individuals.
The critical word is "genuinely." Many people in the events industry are treated as self-employed when they are, in reality, workers or employees. This misclassification is widespread and risky.
IR35 and off-payroll working
IR35 is the common name for HMRC's off-payroll working rules, which target arrangements where an individual provides services through an intermediary (typically their own limited company) but would be an employee if engaged directly.
Since April 2021, medium and large private sector businesses are responsible for determining whether IR35 applies to each engagement. If the rules apply, the fee-payer (you or the agency through which the freelancer is engaged) must deduct income tax and National Insurance at source, as if the worker were an employee.
Small businesses (those meeting at least two of the following: annual turnover under £10.2 million, balance sheet under £5.1 million, fewer than 50 employees) are exempt from this responsibility, and the contractor retains responsibility for their own status determination.
HMRC's CEST (Check Employment Status for Tax) tool can help with status determinations, though it has been criticised for producing unreliable results in borderline cases. For regular engagements with freelancers, consider seeking specialist advice on IR35 compliance.
Running PAYE for event staff
If you engage workers or employees, you need to register as an employer with HMRC and operate PAYE. This involves reporting to HMRC each time you pay an employee or worker, using Real Time Information (RTI) submissions, deducting income tax and employee National Insurance from each payment, paying employer's National Insurance, and sending the deductions to HMRC by the relevant deadlines.
For event organisers who only employ staff occasionally, setting up and running PAYE can feel disproportionately burdensome. Options to manage this include using a payroll bureau or accountant to handle PAYE on your behalf, using a staffing agency that handles payroll for the workers they supply, and using HMRC's Basic PAYE Tools (free software for employers with fewer than ten employees).
Holiday pay for casual workers
Even if someone only works for you for a single day, they accrue holiday pay. For casual and irregular workers, the standard approach is to calculate holiday pay at 12.07% of hours worked (representing the 5.6 weeks' statutory minimum entitlement as a proportion of the working year) and either pay it as a separate, clearly identified addition to each payment, or accrue it and pay it when the worker takes leave or at the end of the engagement.
Many event organisers incorporate holiday pay into the headline rate (sometimes called "rolled-up holiday pay"). While this was historically considered non-compliant, HMRC generally accepts it provided the holiday pay element is clearly identified and itemised on the payslip.
Pension auto-enrolment
If you are an employer, you have auto-enrolment duties. Workers who are aged 22 or over, earn above the earnings trigger (check gov.uk for the current threshold), and work in the UK must be auto-enrolled into a qualifying workplace pension scheme. You must make employer contributions of at least 3% of qualifying earnings.
For very short-term workers (those who are employed for less than three months), postponement can defer auto-enrolment duties. But if the worker remains in employment beyond three months, you must auto-enrol them at that point.
Paying volunteers
Volunteers are not paid for their time. However, you can reimburse genuine out-of-pocket expenses (travel, meals, accommodation) without creating an employment relationship or tax liability, provided the expenses are genuine, evidenced by receipts, and not a disguised form of payment.
Offering a flat-rate "expenses" payment that does not relate to actual costs incurred risks creating an employment relationship and a tax liability. If a volunteer receives a payment that is, in substance, payment for work, they become a worker with all the associated rights and your corresponding obligations.
Practical steps for getting it right
To avoid the common pitfalls, determine the correct employment status for every person who works at your event. Register as an employer and operate PAYE if you engage workers or employees. Pay at least the National Minimum Wage for all working time, including briefings, training, and on-call time. Keep accurate records of hours worked, rates paid, and deductions made. Pay on time, every time. Use professional payroll support if you are unsure about any aspect of the process.
Getting pay right is not just about legal compliance. It is about treating the people who make your events happen with fairness and respect. An industry that pays its workers properly attracts better people, and better people make better events.
