Flat Rate & Invoice Payments

[Clare@InTouch]

Thanks for your reply. I am very new to this field so confused a bit about the work Capital. Sorry for being pain in the neck.
I may have to pay him around 10K. We are trying to develop a software on my company's name. The software which we will be developing is any how related to word "Capital"?

Regards
GMans.

Capital means capital equipment - usually larger items that a business buys that will last for more than a year. A computer, a van, certain other plant & equipment.

That doesn't seem to be the case here, was just adding it for completeness (otherwise someone would have jumped in and corrected me for not mentioning it )

[stek]

Thanks for your reply. I am very new to this field so confused a bit about the work Capital. Sorry for being pain in the neck.
I may have to pay him around 10K. We are trying to develop a software on my company's name. The software which we will be developing is any how related to word "Capital"?

Regards
GMans.

You won't be paying 'him' anything, your Ltd will.

Who is this 'him' - a friend or relation? I have a suspicious mind....

[Sockpuppet]

You and me both baby!

[Contreras]

Sorry, am I doing something wrong here?

LOL, no.

Scroll up... read what SarahL says and ignore the mischief makers.

[stek]

LOL, no.

Scroll up... read what SarahL says and ignore the mischief makers.

Come on - it's his mate and its a tax fiddle. Allegedly...

[northernladuk]

Come on - it's his mate and its a tax fiddle. Allegedly...

Unfortunately that is exactly how I see it as I mentioned in the other thread. It just doesn't seem right. Problem is we get so many people presenting us figures without telling us why and then later on the truth comes out and it's been a complete waste of time so the OP may incorrectly being tarred with the wrong brush.... but the fact there are two threads on this and it is going on and on makes me think otherwise...

Surely this other guy has been invoiced by ltd's before so should be able to advise you how he would like it done.... unless you are setting a scam up not understand either side of course....

[Contreras]

Come on - it's his mate and its a tax fiddle. Allegedly...

Yeah but if it's a tax fiddle don't you want to know how?

Personally I can't see how taking on a self employed contractor (even if it is oneself) could possibly avoid any VAT or other tax, but if it does then I want to know about it.

One thing that has not been mentioned yet is that the self employed 'mate' will need to take care of their own NI contributions, and if they fail to do so then the 'employer' becomes liable.