Client company has a proposed arrangement with one of its senior employees that a company he owns 100% gains orders from one main customer with whom he has an historic relationship and these orders are then passed on without markup. In return for agreeing to pass on the orders his company is granted a 10% share of the employer company's entire annual profits.
As far as I am aware the employee's company does not have any other activities but insists on retaining the relationship with the end customer.
I am concerned that were HMRC to examine the relationship they would deem it to be remuneration in another form and therefore liable to tax & NI through the payroll.
My problem is that the employee's accountant (FCCA) has given it a clean bill of health and I assume he is conversant with all the facts.
Any views would be most appreciated.
