"Recruitment Fee" as Business Expense

[CMS_Netter]

I've landed an excellent contract through a good friend of mine (permy) who goes back years. It gets me off the bench and it is very close to my home.
I agreed to give him small % of rate (rather him than some pimp) as he managed to negotiate me a very decent rate.

Does anyone know can I run this through my company as a genuine business expense?
It would be like a recruitment/agency fee of sorts.
Any ideas guys?

[Clarky]

I've landed an excellent contract through a good friend of mine (permy) who goes back years. It gets me off the bench and it is very close to my home.
I agreed to give him small % of rate (rather him than some pimp) as he managed to negotiate me a very decent rate.

Does anyone know can I run this through my company as a genuine business expense?
It would be like a recruitment/agency fee of sorts.
Any ideas guys?

Why not put it through as sales commission? Totally legit. Just ask your mate to raise you an invoice.

Putting it through as a recruitment fee for finding you work can lead to all sorts of nightmares...

[CMS_Netter]

Mate is a permy and has no ltd company so raising an invoice isnt really an option is it?

What kind of knightmares do you mean for recruitment fee?

Thanks for your help!

[thunderlizard]

Yes. It's not a recruitment fee because nobody's being recruited. Nobody's changing their job. You've made a sale, that's all. As above.

[Tingles]

Anybody can raise an invoice - they put it through on their self assessment form.

[pzz76077]

I've landed an excellent contract through a good friend of mine (permy) who goes back years. It gets me off the bench and it is very close to my home.
I agreed to give him small % of rate (rather him than some pimp) as he managed to negotiate me a very decent rate.

Does anyone know can I run this through my company as a genuine business expense?
It would be like a recruitment/agency fee of sorts.
Any ideas guys?

Sounds like you have landed a good 'un.

Of course your mate will have to pay tax on the income you are sending his way, but you should be able to claim all of your costs back as legitimate business expenses.

PZZ

[djhns]

I think people need to understand that in this instance: An Expense to one party will be Income to another party.

Therefore, both parties will need to report this in their tax returns should they be required to do so.

[vetran]

If your mate is working for the company you will be working for then make sure its above board only MP's can afford to take graft.

As above sales commision sounds OK.