Friend asked to bill through my company - is it OK?

[pmeswani]

Healthcare and pensions, mostly.

The tax position depends on more than you have told us, and most importantly is not usually something that the taxpayer gets to choose. For example, if HMRC treat the income gained from the work as being employment income, it will attract tax in the UK, regardless of where your friend lives. If you have your Ltd Co in the loop, and everything else in the loop is abroad, they may just stick you with the tax bill.

Suggestion: for YourCo Ltd, substitute HisCo Ltd (a new Ltd Co that he creates). OK, client contracts to HisCo Ltd, HisCo Ltd subcontracts to his French company, that pays him. If both countries accept that as the real situation, then that works as well as doing it with YourCo Ltd.

And does he actually have a company in France, or is he working as Profession Libérale and using the term company loosely? If so, more chance that HMRC will see YourCo Ltd as employing him.

Would an option be for the French Contractor to register his UK Ltd business to an Accountants Address? The only pitfall I can see is mainly the VAT and other tax registration and the Business Bank formation.

[expat]

Would an option be for the French Contractor to register his UK Ltd business to an Accountants Address? The only pitfall I can see is mainly the VAT and other tax registration and the Business Bank formation.

Exactly. Or indeed the OP could offer his address for registration and mail. That's doing his friend a favour without risking big trouble.

[pmeswani]

Exactly. Or indeed the OP could offer his address for registration and mail. That's doing his friend a favour without risking big trouble.

Even though it isn't strictly necessary, the French Contractor can appoint the OP as the secretary so that (s)he can act as a signatory where needed (except for the Business Bank Account, where the Director will also need to sign), therefore reducing any unecessary headache. The Secretary could offer to charge a nominal fee for their service or do it for free.

[Moscow Mule]

Him using his French company is out because the contract must be in the UK,

Why? There's no bar to his French company invoicing a UK company and declaring that English law will apply.

As to the proposition, I wouldn't. It's just too risky.