Friend wants to contract through my company

[MrHelpful]

Hello,

Need some advice. I had a lead for a potential contract and I sent it to a friend as he was searching for a new challenge. I didnt want to persue the opportunity as am satisfied with current contract arrangement. Anyways, cutting to the chase - friend has secured the contract for an initial 9 months (with likely renewals) and is overjoyed.

I have offered to help him get started in the world of contracting by using my limited company to invoice. Initially, the easiest way I have said the arrangement would work is by paying him his full salary by PAYE through the company. I don't want to make him a director / shareholder as am unaware of the hassle that would cause. Questions - is it worthwhile to let him keep business incurred receipts - if yes, what benefit is this to him? Can I offset this in my current accounts - reducing my corp tax bill.

Advice appreciated for anyone who is already doing this and helping someone out. Accountant has said it'll cost me very little to get him set up with wage slips, P60 etc

Thanks

[lukemg]

NOOOOOOOOO !! You must be 'kin crazy. Takes 5 minutes to attach him to an umbrella and 10 to get someone to setup a ltd (ok probably too much for this first one).
I would never overcomplicate my accounts for something like this. You may find yourself explaining all this during an investigation down the line, accounting for IR35 etc on behalf of your mate.
Unless you are getting a cut I can see no upside to this.

[Murder1]

It's that quick to setup a ltd co I'd advise against it.

That is unless you are getting a cut of the daily rate, but that in itself has it's own complications and considerations.

[NotAllThere]

Employees get rights after a while. You really don't want that.

[northernladuk]

Friends and business don't mix. Leave it well alone.

[d000hg]

He could go sole-trader and your company could act as his agent, taking 10%?

[Support Monkey]

Never ever ever ever ever work with children, animals or friends, its a disaster waiting to happen, set him up with an umbrella for 9 months if he likes contracting set him up with his own limited, but then i am only repeating what everyone else is saying

[MrHelpful]

Is there no adavantage for me to have a "professional relationship" set up with this new organisation he will be contracting for... I know in the past it is very hard for contracting companies to directly build a relationship with a client i.e. invoice directly and this is an opportunity where an agency does not need to be involved. We just don't want to miss out on the opportunity as likely to lead to a number of posts in the near future.

[northernladuk]

Is there no adavantage for me to have a "professional relationship" set up with this new organisation he will be contracting for... I know in the past it is very hard for contracting companies to directly build a relationship with a client i.e. invoice directly and this is an opportunity where an agency does not need to be involved. We just don't want to miss out on the opportunity as likely to lead to a number of posts in the near future.

Why ask advice if you are not going to take on board what everyone says???

[MrHelpful]

Who said I am not take it onboard... I asked a question here to gain opinion. It has to be an informed decision..