Hiring a remote worker Hiring a remote worker
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  1. #1

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    Default Hiring a remote worker

    Hi,

    Can you please help me understand how taxation would work if I was to hire somebody from another country to do work for me remotely. Scenario:

    Bob from India does 8 hours of work for my company at £8 an hour. He sends me an invoice for £64, I transfer £64 to his account. Bob is not an employee, I don't have to provide work for him and he doesn't have to do it if I do. How is the £64 classed when coming out of my company account?

    Thanks

  2. #2

    Fingers like lightning


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    I'd say either Direct Cost, Sub Contracting or Professional Fees from and accounting point of view. From a taxation point of view, it's a straight forward allowable expense.
    Last edited by Craig@Clarity; 16th August 2019 at 05:02. Reason: Additional information

  3. #3

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    Quote Originally Posted by Craig@Clarity View Post
    I'd say either Direct Cost, Sub Contracting or Professional Fees from and accounting point of view. From a taxation point of view, it's a straight forward allowable expense.
    Am I required to pay minimum wage to somebody on this engagement? They will not be an employee. Or can I pay less than minimum wage.

  4. #4

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    Quote Originally Posted by cannon999 View Post
    Am I required to pay minimum wage to somebody on this engagement? They will not be an employee. Or can I pay less than minimum wage.
    The answer is in your question. If they're not an employee then minimum wage doesn't apply. Sounds like you're simply hiring a professional to do a job for you on a very adhoc basis. They do the work, bill you, you pay the bill, done. Perhaps there's more to the relationship that we're not aware of but you maybe over thinking it.

  5. #5

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    I have both overseas and UK people. We put them through as sub-contracting expense.

    I also have UK employees, that go through payroll. Minimum wage rules apply, not that they are relevant. If someone isn't worth more than minimum wage I'm not going to put them on a job for a client.

    That is for work done on a client project for which I am being paid. I also have used a contractor on a Plan B project we're working on. We put that through as Direct Expense.

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