Friend working through my co

[mickymellon]

sorry if it's been done before but a friend of mine is working for a media company freelance until the job either gets set in stone or he's made perm.

I've explained Umbrella Vs Ltd but since the length of job is as yet undecided, what are the implications for us if I just get him to bill through my co ?

[doodab]

You would basically be acting as an umbrella so you would need to sort out the technicalities of him getting paid a salary by your company i.e. PAYE paperwork and deductions and of course make sure he is OK with that.

You might also need to check that your liability insurances would cover him and get them extended if need be.

[thunderlizard]

Your company would be liable for doing the work to fulfil whatever contract it signs with his client.
If you wanted to pay him a salary as an employee you'd have to sort out his PAYE tax and NI.
If you wanted to pay him dividends you'd have to make him a proportionate shareholder.
If you wanted to pay him gross you could treat him as a sole trader, & would have to rely on him to operate properly as one.
Can't his client just pay him as self employed?

[mickymellon]

thanks for all the suggestions, I'll find out more and see what his company requirements are tonight

[northernladuk]

If he is your friend then leave it well alone. Money and friendship do not mix. No exceptions.

I am sure some people have gotten away with it and helped them but for every one of them there will 5 other people that have lost good friends through petty (or not so petty) arguments about money. Hell you can't even trust you own partner with things like this.

The best thing you can do as a friend is show him this forum and let him make his own mind up.

Just walk away from it.