Hi,
I have an employee who has a proposal which will be in both our interests if we go ahead with it.
He has expertise in an area and will import a specialised line of stock and sell it to me cheaper than I am currently getting it.
The ideal situation is that I pay the Asian source supplier, my employee takes in the goods and develops them and I pay him 10% of the supply cost. I presume I will have to treat this as salary and operate PAYE? (despite the fact that he had been operating a business like this himself for a few years anyway)
If he (as a sole trader) buys the product and invoices me can I pay him for this as a supplier without bringing PAYE into it?
If he sets up a limited company and supplies me, can I pay the company without having to operate PAYE?
He will continue to draw his salary from me as normal as an employee.
Thanks and I hope the above is clear.
Tommy
I have an employee who has a proposal which will be in both our interests if we go ahead with it.
He has expertise in an area and will import a specialised line of stock and sell it to me cheaper than I am currently getting it.
The ideal situation is that I pay the Asian source supplier, my employee takes in the goods and develops them and I pay him 10% of the supply cost. I presume I will have to treat this as salary and operate PAYE? (despite the fact that he had been operating a business like this himself for a few years anyway)
If he (as a sole trader) buys the product and invoices me can I pay him for this as a supplier without bringing PAYE into it?
If he sets up a limited company and supplies me, can I pay the company without having to operate PAYE?
He will continue to draw his salary from me as normal as an employee.
Thanks and I hope the above is clear.
Tommy