I given a contract to one of fellow back in india and he invoiced to me with detailed work info and for payment details, he has given his personal bank account.. From limited company, Is it ok if i pay it to his personal account through bank transfer? Please advise??
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Yes and/or no, or maybe no or/and yes.Contracting: more of the money, less of the sh1t -
It's fine.
Whether you are going to get hit with having to pay some tax for your employee if he doesn't do it is a different question which would require professional advice.Comment
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Did you contract with him as an individual or with a company?Originally posted by everfor View PostComment
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I am assuming that the company is UK based. I am also assuming that the contract demonstrated all the aspects of self employment.
It is absolutely fine to pay his invoice to his personal account. As a "one off" type arrangement I believe HMRC would have a hard job arguing he is your employee. Though they could try as a result of a compliance review.
Thus the paper trail is important. That is your primary evidence to HMRC that is was a bit of work done by a casual.
Whether or not this causes any issues for him back in India who knows. But he will need to comply with whatever regulations are in force. There is also some possibility that these regulations - whatever they may be - cause an impact on your company.
In the furture it may possibily ease your problems if you clarify these before passing on the engagement.Comment
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