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Paying a friend for work done

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  • 10-08-2014 12:49pm
    #1
    timetogo
    Closed Accounts Posts: 990 ✭✭✭


    I'm not sure what the correct procedure is for this and I'm not trying to do anything dodgy.

    I've a small business and need some work done. I have a friend who is a normal PAYE worker and can do the work for me in his spare time.

    Do I ask him for an invoice and pay him as normal. Obviously my money will go through the books. On his end does he just inform revenue and pay it at normal PAYE rates? What do we do about VAT?

    It's a big enough bit of work but it's not big enough to go through the hassle of setting up a company and doing tax returns and the costs that go with that.


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    #2
    srsly78
    Registered Users Posts: 7,157 ✭✭✭srsly78


    Get him to invoice you, and put his PPS number on it. Since he is not registered for VAT there is no VAT to charge. He is responsible for declaring this extra income, if this is "too much hassle" for him then he should not do the work.


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    #3
    timetogo
    Closed Accounts Posts: 990 ✭✭✭timetogo


    srsly78 wrote: »
    Get him to invoice you, and put his PPS number on it. Since he is not registered for VAT there is no VAT to charge. He is responsible for declaring this extra income, if this is "too much hassle" for him then he should not do the work.

    No, that doesn't sound like any hassle. Thanks for that.


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    #4
    srsly78
    Registered Users Posts: 7,157 ✭✭✭srsly78


    It's no hassle for you, but it does entail some filling out of forms etc for him.


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