Short Piece of Work

[valluvan]

I have been asked to do a short piece of work in a country outside the UK.I intend to use one my mates to do it.I am not sure how to go about billing the client and paying my mate.Any pointers gratefully received...
Cheers
Val

[TOSH1]

Are you the director?

[LisaContractorUmbrella]

Do you have a company, which country is the work to be carried out in, what work is involved, is your mate an employee of yours etc etc We need a bit more info to be able to help

[valluvan]

Do you have a company, which country is the work to be carried out in, what work is involved, is your mate an employee of yours etc etc We need a bit more info to be able to help

I contract through my LTD company and I am one of it's directors.The work is in North Africa. My mate is not an employee of my company and work is IT related.

[LisaContractorUmbrella]

I contract through my LTD company and I am one of it's directors.The work is in North Africa. My mate is not an employee of my company and work is IT related.

What's your friend's position - is he UK tax resident, does he have a company, is he a sole trader, currently employed???

[TheFaQQer]

Draw up contract. Get friend to complete work. Pay friend.

Ensure that your friend doesn't skimp on his tax and NI (for which you would be liable if you were deemed to be his employer).

[northernladuk]

Or you could bill as normal, withdraw the dividends as you would normally and then bung your mate a handfull of fivers.

Just start getting used to not bending down for soap.

[valluvan]

Draw up contract. Get friend to complete work. Pay friend.

Ensure that your friend doesn't skimp on his tax and NI (for which you would be liable if you were deemed to be his employer).

Thanks.I was more interested from the client's side of things.I know there has to be a PO from the client before I could ask my mate to commence work.Is there a seperate contract/agreement(with non-disclosure clauses, terms etc) that needs to come from the client for this engagement??

[LisaContractorUmbrella]

Unless I am misunderstanding you - the contract should be between your business and the client; who you then provide to complete the work is up to you. As long as your friend has the necessary skills and experience to complete the project I can't see that there should be any problem.

[TheFaQQer]

Thanks.I was more interested from the client's side of things.I know there has to be a PO from the client before I could ask my mate to commence work.Is there a seperate contract/agreement(with non-disclosure clauses, terms etc) that needs to come from the client for this engagement??

Ensure that the contract between your business and client gives you the right to substitute with appropriate resource, without any restrictions (e.g. they need to approve the substitute in writing - bad idea). Then get your mate in to do the work and pay him accordingly.

The contract between client and your co is a business to business transaction - they shouldn't be restricting who you get in to do the work.