Is this a paye grey area.

Client has two companies, should employee be on both schemes

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we have a client who has two companies. Employee is on paye at one. If he works in the other should he be on that other companies scheme or can it be done by invoice?

 

 

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By WhichTyler
26th Apr 2017 12:27

Not grey at all, think about agencies that supply staff to other companies.

so a couple of ways to do it:
1. Employee is contracted to Co A, who pay their salary. Company A sets up a secondment agreement with Company B to supply staff. A invoices B (plus VAT). Individual remains employed by A even though managed by B (which is why the secondment agreement needs to cover performance, attendance etc)

2. Individual has two par time contracts of employment, one with A and one with B (so two payslips two managers, etc)

3. A&B jointly employ the individual ( so one contract, signed by both companies). Best kept fro group companies...

what to choose depends on the relationships between A, B and the employee and the purpose of the employment

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RLI
By lionofludesch
26th Apr 2017 13:04

If you go for the supply of staff, don't forget the VAT.

Whether the VAT is recoverable may colour your decision on the route to take.

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