Research - paying participant expenses and compensating for time: guidance

11. Impacts on tax and National Insurance

HMRC have issued a public statement on payments for involvement in research:

“There will be no tax or NIC liability arising on the individual if the sums received do no more than reimburse the individual’s reasonable costs of participating in the trial or research, including costs of travel and subsistence… Under Section 16, Taxes Management Act 1970, HMRC is entitled to ask for details of payments to non-employees at their discretion; but they would not routinely ask for details for small payments such as these.”

Following discussion with HMRC, Scottish Government is content that this exemption applies to participants involved in research or participatory activities that we carry out or commission. The guide payment rates set out in this document are proportionate to an individual’s reasonable costs of participating in terms of a) their expenses and b) the time given over by the participant. As no employment relationship exists (i.e. participants are not on payroll), payment of any mode (bank transfer, vouchers, in-kind) are unlikely to have tax or National Insurance Contributions implications for participants.