Paying a private individual

[Red Wood]

Hi all,

How would I pay a private individual for ‘services rendered’.

I have managed to secure a contract and wanted to pay someone for their referral. How can this be done considering the payment would be going to an individual, not a sole trader or company.

Thanks

 

[Tempest Financial]

Please elaborate. Do you mean from an accounting perspective, or how to transfer the actual payment

 

[Red Wood]

From an accounting perspective. Also, would the private individual need to invoice me? I presume that the payment could be made via BACS right?

A bit more information that may help;My company is limited and VAT registered.

 

[Tempest Financial]

There is not a problem paying a private individual, it should be noted as a business expense. BACS from company account would be the safest as it is easier to show proof of money coming from the company. An individual can be exempt from VAT so might not have to pay the VAT. You would need an invoice.

 

[Red Wood]

wonderful, thanks for the help...

 

[MyAccountantOnline]

I'd ask them to issue your company with an invoice.