chrisk started this topic @ 16:47 on 20/05/2007
Can anyone explain the legal / tax side of employing freelance sales staff on a commission basis who will be cold calling business and residential customers?
I am negotiating a contract to supply customers for a company that will involve the recruitment of large numbers of freelance sales staff by me. I want them to be working freelance and not as an employee of my company so they will be registered as self-employed.
What would be the admin requirements for paying commission? Will they invoice me for offerring a service or would I issue them with a pay slip / receipt for services with no tax deducted, NI or tax code included?
Will VAT be paid on my profit after payment per sale to the agent or on the gross amount paid e.g. if I'm paid £50 per customer and £40 of that goes to the agent, would I pay VAT on the £10 or on the £50?
thanks
RE: Employing freelance sales staff
frenchy | 20/05/2007 06:16 PM
hi there
I CANT REALLY HELP YOU WITH THE INFORMION YOU NEED. HOWEVER I DOD KNOW THAT THEY WOULD INVOICE YOU FOR THEY SERVICES YOU WOULD NOT TAKE TAKE OR NI OR HAVE A TAX CODE FOR THEM. I AM A TEAM LEADER FOR A DIRECT SALES TEAM IN WALES IF YOUR INTERESTED IN CONTACTING ME FOR PEOPLE OR ADVICE PLEASE DO SO JAMIE_FRENCH0@YAHOO.CO.UK
RE: Employing freelance sales staff
salespro | 17/07/2009 07:04 PM
I would suggest asking the sales rep if they would be happy to collect the payment for you. Then you save time invoicing and they simply transfer funds to you minus their commission. This would work better for both parties to ensure payment and service.
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David White
Founder & Managing Director
Advertiserbay.com
RE: Employing freelance sales staff
buddinghealth | 17/07/2009 09:04 PM
If they are just working on a freelance basis just get them to invoice you for their commission amounts at the end of the month and they will be treated as any other supplier to your business.
IF they are working on site just make sure your insurance covers freelancers otherwise they will need their own
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RE: Employing freelance sales staff
virtuallysorted | 20/07/2009 10:05 AM
You would need a watertight subcontract agreement with them, both to protect your assets and also to establish the relationship.
One thing you would need to be quite careful about it whether they are employed by you or whether they are actually genuinely self-employed. HMRC have rather a good quiz on the subject here: http://www.hmrc.gov.uk/selfemployed/tmaemployed_or_self-employed.shtml
We have a subcontract for sale but it is designed for virtual assistants rather than sales people. Let me know if you would like more details?
Caroline
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Caroline Wylie
www.virtuallysorted.com
www.SocietyOfVirtualAssistants.co.uk