Paying my son

Phizz

A few months ago I became self employed, sole trader VAT registered. Just after that my son was asked if he wanted some temp work by a friend of mine who has his own company, he did and has been working for him for a couple of months. My son has had a little trouble getting paid, he was told the company needed an invoice, which he supplied listing the hours he worked. He has now been told to get me to invoice the company through my business, as it would be easier (acording to their accountant apparently). I'm not very happy about this, he is working for them not me, why are they wanting me to invoice for work done by my son? Also, if I were to invoice them through my business would there be a down side for me or any tax / NI implications. Any tips appreciated.

Mrs_justjohn

It seems they have employed your son on a 'self employed basis' - this means that they wouldn't be responsible for his tax and NI payments - he would have to sort that out for himself.

If you invoice them then it will be an income for your company so you would need to declare it. By rights they should have accepted your sons 'invoice' of hours worked @ agreed price and just paid him!

Phizz

Thanks for the reply, I think I will tell them to accept his invoice. If they perceive a problem with him invoicing them then surely I would have the same problem if he were to invoice me.

pitkin2020

An invoice is an invoice regardless of who it comes off, you sure they aren't just stalling and asking you to generate an invoice instead of your son just to get a little more time??

Horace

I think they are stalling, he worked for them on a temporary contract. Was it made clear to your son at the start that he would be employed on a self-employed basis? If not, then he was a employee on a temporary contract and the company is liable for his tax and NI.

If the invoice comes from you then you would have to pay your son's NI and tax because he would be your employee. If the invoice comes from your son, has he registered his self employment with the HMRC?