Tax implications

annam11

If a barrister completes work for one company but is paid by a totally different company what is the tax implications?

Story is: One company gave a legal guarantee to pay the barrister but this was then not allowed by a higher authority. Another company has just stepped in and agreed to pay.

srsly78

The implications for who? The payer or the payee?

For the barrister it doesn't matter surely? Income from A ltd is the same as income from B ltd.

The only thing is they may need to void an invoice and raise a new one, ask accountant how to handle this in the books.

annam11

Implications for the payer??

srsly78

Well they will be down a couple of quid, so that means less profit - which has obvious tax implications.

mickdw

There would surely need to be a valid reason for the company to be paying for work that they did not require or benefit from or else it wouldnt be tax deductable.

If the other company gave a legal guarantee, it would appear they should be bound to paying the bill. What does higher authority refer to?

annam11

The Higher Authority is a Commission and they have told the Safety Supervisory Body that they are not allowed to pay the bill even though the safety supervisory body hired the barrister and gave a legal guarantee to pay. The safety supervisory body then asked another company to pay the bill and they have agreed to pay it which is redicilous.