threebedsemi
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i assume that it would be prudent to note in writing to him that the payment is a gross payment and that he is liable for all taxes etc. in case he acts the maggot and if caught claims that he assumed that it was a nett payment?
i assume that it would be prudent to note in writing to him that the payment is a gross payment and that he is liable for all taxes etc. in case he acts the maggot and if caught claims that he assumed that it was a nett payment?
I think there is something strange or unusual about somebody receiving extra payments for something that comes up through their employment. Is his employer aware that you intend to pay him directly? Are his referrals to you a matter of company policy (at his employer) or a personal initiative? Are those who receive the referrals clear on this distinction? Will they be clear that he is getting a referral payment?There is nothing dodgy going on. he works with a company who is not in competition with ours, nor is it in a position where it needs our services directly. its simply that he makes various contacts, via his current position, with people who are interested in the services which we provide.
we would like to 'thank' him for any concrete business forwarded our way, without it costing us ott and while making it worth his time and effort...
its not at the stage (yet) where he would consider setting up some kind of company to invoice and take payments through, although we asked him to consider this as it would be the most sensible way of doing it for us as Caveat suggested..
This sounds like an above-board solution, provided that his main employer is made aware of the situation.One possible way around the whole thing, and to remove any risk to you, is to register them as a part-time employee of your company (or an agency acting on behalf of your company), and pay them accordingly.
IMHO there is not enough imformation presented to conclude that there is 'nothing dodgy' here. In particular, the OP hasn't responded to the key question as to whether the referrals and corresponding payments are being made with the blessing of the referrer's employer or not.I wonder if people are making a mountain out of a molehill here. OP said there was nothing dodgy about the arrangement. From that I would infer that the intended recipient of the reward was behaving properly in relation to his employer.
I wonder if people are making a mountain out of a molehill here. OP said there was nothing dodgy about the arrangement. From that I would infer that the intended recipient of the reward was behaving properly in relation to his employer.
I want to qualify the advice I tendered earlier. When I made my suggestion, I was looking at the lump sum idea mentioned in the first post. If there is a formula for computing the size of the payments, something like 10% of the price of each contract procured, then I would go along with the idea of treating the payments as PAYE income in the hands of the recipient.
Just another quick point that you should note is whether the commission will be subject to VAT or not. If the principal activity (i.e. the work/service that he is passing on to you) is VATable then this could well make the commission payment to him VATable also...
Surely that is relevant only if the level of commission is above the exemption threshold of €37,500? As I read the story, this is the only service the intended recipient will be supplying.
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