Invoicing Through A Friend's Company?

[Dr. Burrito]

I'm doing a job off the books from where I work and, since I certainly cannot invoice this job through them, I need to look at running the money through a friend's company if its not going to create a HUGE PAIN IN THE REAR for him, kind fellow that he is.

Is this a hugely complicated process that's going to create more grief than it is worth?

I know this company I'm doing the job for will expect to be invoiced, etc..., due to the size of the contract, so I want to do this as above board as I can. Unfortunately, given the limited amount of time I have in starting this, I don't think starting a company to handle it is viable.

Just curious about experiences, tax issues and that sort of thing.

Thanks,

Burrito

[~G~]

You're right, it's mostly a tax issue. Your friend might Invoice, withdraw the money as a larger salary for himself (or for any employee in the books), and pay you in cash. Of course income tax needs to be paid. (By the way - this advice needs to be ignored, it's illegal!).

Alternatively he can transfer it overseas for a "foreign service provider", and pay 15% witholding tax at source. (By the way - this advice also needs to be ignored. It's also illegal!)

How big is you contract? if it's enough money, having your friend setting a WP for you shouldn't be such a big problem.