Invoicing between companies I own & one work for

I started my new AV company and want to invoice the company I am director of in design is this legal

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I started new AV company that I am owner and share holder of only. At the moment I work for design & build company which I am director of but not share holder. My role there is Designer / PM is what I get paid for. I started the AV company as my hobby but now is doing well and I can offer the services to the company I work for but I want to know how to invoice them and is it legal as work for them already. I would quote them fair market rate not more but maybe little discount to get the work. I have the tools setup and all want to know what steps I must insure if was to invoice them for services of the AV company. And if this is totally ok with HRMC as long as I pay all taxes and VAT required. Yes maybe in near future I would be leaving this company going full time on my own but still offering them the services. Any useful inside into anyone knows about this or done it great. And please no commented about ask your accountant as they only give cryptic answers. Hat not clear yes it's legal or no don't do it .

Replies (13)

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By David Ex
04th May 2024 09:58

Gecko1666 wrote:

I would quote them fair market rate

There’s a fair market rate for accounting and tax advice - and it’s not zero. You should already have an accountant. If you don’t, this is a good time to appoint one.

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Replying to David Ex:
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By Gecko1666
04th May 2024 10:07

Hi David EX I am not sure what your response is directed to, with you highlighting a part sentence in my question. That part has nothing to do with how much I pay for account or tax advisor, that part is about what price I charge for my services or equipment.

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Replying to Gecko1666:
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By David Ex
04th May 2024 10:13

Gecko1666 wrote:

Hi David EX I am not sure what your response is directed to, with you highlighting a part sentence in my question. That part has nothing to do with how much I pay for account or tax advisor, that part is about what price I charge for my services or equipment.

You’ve asked for free advice and I was pointing out that professional advice is something you pay for not expect to be given for nothing.

https://www.accountingweb.co.uk/any-answers/how-to-use-any-answers

“If you intend to plan a course of action based on what you read in here, you should instead be taking professional advice.”

“They are not here to provide free accounting advice.”

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JCACE
By jcace
04th May 2024 12:09

A company can legally invoice another company for services provided.
A company can fraudulently invoice another company for services too.
I don't know what you expect a bunch of uninformed strangers (in terms of all the salient facts of your setup) to be able to tell you that your much better informed accountant can't .

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By Ruddles
04th May 2024 12:22

“ is this legal”

That should tell you that you have posted your question on the wrong forum.

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By FactChecker
04th May 2024 13:15

"And please no commented about ask your accountant as they only give cryptic answers. Hat not clear yes it's legal or no don't do it ."

Cryptic answers is all you can reasonably expect if you ask cryptic questions.

I plump for "no don't do it" - but that depends on a bunch of info that you've not provided (none of which is accounting-based).

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VAT
By Jason Croke
04th May 2024 14:14

Answers are only cryptic when you ring around Accountants fishing for free advice, engage with one and the answers will not be cryptic and will be tailored to your specific situation.

Chartered Accountants can't give advise unless you are a client, we have to do money laundering checks, check you are not a sanctioned Russian or a PEP, if we advise without knowing who you are we incur penalties. Plus risk being sued by a non client which means our PI insurance does not cover our risks.

No accountant is going to give you the answers you want unless you sign up, and the benefit will be they can advise on the whole situation and not just a tiny element of a bigger picture.

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By paul.benny
04th May 2024 16:16

Agree with David and Jason about the need for proper paid-for advice. That said, I see nothing in the limited facts given that is fundamentally unlawful. But there is a clear conflict of interest in being a director of one company and being the owner of another company providing services to the first company.

You don't say whether you are a full time employee as well as being director. If so, I'm sure you won't be providing services via your own company in hours that your employer is already paying you for.

I'm sure your own company is already keeping up to date with corporation tax filings, is VAT-registered if it has turnover above the threshold, has the requisite liability insurances, and so on.

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By taxdigital
04th May 2024 18:35

Whilst there is nothing unlawful about it, you might want to get paid for advice (as others have said) as IR35 may be in point.

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DougScott
By Dougscott
04th May 2024 19:54

It's probably going to be legal but it could possibly not be legal.

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By Paul Crowley
04th May 2024 21:20

You have a fiduciary duty as a director to declare your interest in the contract, so should not be making the decision.
The other directors should be making the decisions on contracts relating to your company.

All concerned should know what hat you are wearing.

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RLI
By lionofludesch
05th May 2024 00:04

Is this something to do with Aston Villa?

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Replying to lionofludesch:
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By FactChecker
05th May 2024 00:26

Presumed the industry sector is what was used to be called 'son et lumière' but was briefly, in the '80s, called 'audio visual' in the hope of sounding more modern.

Would've though that was in itself now an indication of being passé, given that it's all just digital electronics ... but I'm no judge (the last good time I had with sound and lights being all-nighters with early Pink Floyd - and I'm not entirely convinced it was all down to the band or the guy spinning the oil-lights)!

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