Hiring/Sub-Contracting Self-employed Person

[pat25]

Hello,

I need to sub-contract small amount of work to a graphics designer, I was thinking of paying by PAYEE (hourly rate), but she is insisting on invoicing my Ltd company as she works as a Sole trader and is registered as Self employed, How do I check if she is really registered as self employed? Is my company responsible if she does not pay her tax/NI contribution?

If I go with sub contracting the person will an invoice from her is good enough or do I need any other paper work (other than the contract I am going to prepare for her work)

Thanks

[Beefy198]

There is something called debt transfer (where if the taxman can't recover unpaid taxes from someone they can then chase other people involved in the transaction) but this would be very unlikely to apply for you if you weren't the one who suggested they trade in a certain way.

Therefore just pay any invoice that they raise and forget about it. With regards to contracts, I think it's just a case of whether you want to cover your back.

However, I'm not a lawyer, so always be wary of my advice

[d000hg]

I've seen contracts which stipulate it is the payee's responsibility to pay any required taxes, when doing work with US companies.

[Turion]

Would you like it if a client wanted to pay you by PAYE? dispite you being self employeed or with Ltd Co. Do you check your plumbers tax status? or anyone else you pay money to??? She should just invoice you and you pay it. Nuff said.