Hi
In addition to my current contract, I have an agreement with a former client to receive regular commission payments.
The payments will be monthly or bi-monthly, and based on their sales of an application I developed for them whilst an employee there. Previously I've received the payments in my PAYE salary.
Now I am trading through my own Ltd Co, I need to collect the payments through that instead. I will also be doing odd hours of work for them every couple of months, on as as required basis.
What is the best way to receive these payments? Should I simply invoice them every month for the commission plus any additional hours that month? How should I describe the nature of the payments on the invoice, given that the payment is for commission, and the commission is for work done before I set up my Ltd Co.?
Or are there more appropriate/applicable ways to collect the commission? For example, through purchase orders?
Any advice you can give me would be very much appreciated.
Thanks
In addition to my current contract, I have an agreement with a former client to receive regular commission payments.
The payments will be monthly or bi-monthly, and based on their sales of an application I developed for them whilst an employee there. Previously I've received the payments in my PAYE salary.
Now I am trading through my own Ltd Co, I need to collect the payments through that instead. I will also be doing odd hours of work for them every couple of months, on as as required basis.
What is the best way to receive these payments? Should I simply invoice them every month for the commission plus any additional hours that month? How should I describe the nature of the payments on the invoice, given that the payment is for commission, and the commission is for work done before I set up my Ltd Co.?
Or are there more appropriate/applicable ways to collect the commission? For example, through purchase orders?
Any advice you can give me would be very much appreciated.
Thanks
