Ltd Company: Sub-contracting issues?

Cameron · 22-09-2009, 12:21 PM

A friend of mine has a 9-5. She's also interested in doing some some extra work, via a job-site. The job site won't take on a sole-trader and insists that people have a Ltd Company.

I'm wondering if I can take the job and pass to her as a supplier.

Is it ok to run this through my company? Or is she then seen as an 'employee'?

I'm hoping/guessing she'd just put it on her personal tax form and it'd pass through my books as an invoice to them as client, payment to me as supplier, invoice from her as sub-contractor/supplier, payment to her.

Is this bad practice? Legal? Any issues?

The SMG · 22-09-2009, 03:01 PM

umm, this is an interesting scenario. I can't see a problem with the setup but i'd certainly advise you to check out the contract between your LTD and the client. For example, if your 'friend' royally screws up, it'll be your LTD comp that gets hit with the negligence claim, not your friend.

G

Cameron · 22-09-2009, 03:04 PM

Thanks Smudgemeister

I will have to make sure we remain friends, it should be fine, I trust them, but perhaps I need something on that end too just to make sure. Will read the contract and see if it's a possible option.

Vaseline · 22-09-2009, 03:29 PM

Quote:

Originally Posted by Cameron

A friend of mine has a 9-5. She's also interested in doing some some extra work, via a job-site. The job site won't take on a sole-trader and insists that people have a Ltd Company.

I'm wondering if I can take the job and pass to her as a supplier.

Is it ok to run this through my company? Or is she then seen as an 'employee'?

I'm hoping/guessing she'd just put it on her personal tax form and it'd pass through my books as an invoice to them as client, payment to me as supplier, invoice from her as sub-contractor/supplier, payment to her.

Is this bad practice? Legal? Any issues?

The employee / not employee line is something to think about. You don't want to be paying employers national insurance to Hector just because he thinks your friend is an employee, not a sub-contractor.

BTW - when I hear the term 'sub-contractor', I often think construction. She's not a female brickie is she?

V

Cameron · 22-09-2009, 03:53 PM

Hmmm... I guess if it is a one-off then it'd be fine. But, I guess it's fair enough for SOMEONE to pay the NI. I don't mind footing it if it gets her the (bricklaying in hotpants) contract.