Paying offshore resources

[sapsam]

Hi Gurus,

I have begun a project for a client with couple of offshore(Singapore) freelancers. I'm managing the project through my company and taking responsibility for delivery. Its brought to my attention that they dont operate through ltd companies as we do here. I will need to pay them directly in their personal accounts.

Is it this allowed? What documentation is required to satisfy HMRC?
Or is this something that is frowned upon?

Your thoughts/advise will be much appreciated.

Regards,

Sam

[Jessica@WhiteFieldTax]

You need some sort of contract with whoever you are paying, thats the first port of call.

Second port of call, if you are worried is a combination of:

(a) get a lawyer to review contract
(b) ask accountant to look over (but they can't (or shouldn't anyway) give legal advice
(c) take advice in Singapore about any obligations there.

Re (c) there is a risk that you could be deemed an offshore employer or something and dragged into their jurisdiction. A bit of time on google should answer that or at least give you a steer.