Paying someone on a non-regular basis

**Spacecadet** · 30 August 2007, 08:14

probably a lot simpler to make him operate as an independant contractor contracting to you. You just pay him plus VAT and he can deal with the rest after that.

**conqurer** · 30 August 2007, 08:28

Thanks. But he hasn't got a company setup.

Originally posted by Spacecadet View Post

probably a lot simpler to make him operate as an independant contractor contracting to you. You just pay him plus VAT and he can deal with the rest after that.

**Spacecadet** · 30 August 2007, 08:29

how about a brolly?

**Burrow01** · 30 August 2007, 18:12

Originally posted by conqurer View Post

Morning all,

I have to pay someone through my company for the services he is providing to a client. The contract has been setup between my pvt. ltd. company and the client and he is the selected person. But the client will call him to do something only occasionally, atleast to start of with.

I am thinking of put him on my payrol. When his client clears the invoice I pay him a salary after deducting NI+PAYE which go to HMRC when I pay them my taxes each month. I shall also issue him a salary slip.

Any issues with this arrangement? Suggestions welcome.

Best regards.

If he is happy with the deductions then you could pay him via a salary, but you will need his P45/P46?

Otherwise you can just pay him the gross amount, and he will need to declare it as income on his personal tax return

Pete

Pete

**NotAllThere** · 31 August 2007, 08:14

I had two employers once - the first taxed me according to my "normal" tax code, the second on a BR code. This mean that everything from my second employment was taxed at the base rate.

NotAllThere

**TheFaQQer** · 31 August 2007, 08:17

Originally posted by conqurer View Post

Thanks. But he hasn't got a company setup.

Shouldn't matter - you pay him, he declares it as income on his tax return.

Only thing is - if he doesn't pay his tax and NI, you become liable.

**chicane** · 31 August 2007, 10:21

Originally posted by TheFaQQer View Post

Only thing is - if he doesn't pay his tax and NI, you become liable.

Does this mean that if a geezer from down the road fitted a bathroom for you cash-in-hand, and Hector caught up with him, you'd be liable for his tax & NI?

Not disputing your argument - just intrigued.

**TheFaQQer** · 31 August 2007, 11:13

Originally posted by chicane View Post

Does this mean that if a geezer from down the road fitted a bathroom for you cash-in-hand, and Hector caught up with him, you'd be liable for his tax & NI?

Not disputing your argument - just intrigued.

No - it's only if they are deemed to be your employee. This is why agencies won't deal with sole traders, only brolly or Ltd.

**THEPUMA** · 31 August 2007, 11:15

Originally posted by chicane View Post

Does this mean that if a geezer from down the road fitted a bathroom for you cash-in-hand, and Hector caught up with him, you'd be liable for his tax & NI?

Not disputing your argument - just intrigued.

no because he would evidently be self-employed.

if your subcontractor was accepted by HMRC as being self-employed, they couldn't come after you for the PAYE/NIC, unless you were deemed to be an agency, in which case they could!

Paying someone on a non-regular basis