[thelist] New Design Firm

[Tony Crockford]

>If you don't mind me asking. How does your situation work? Depending on the
>project, one person gets payed and then pays the others? How does the tax
>situation work with that? Is the check payed directly to you? Thanks again.


That's it exactly.

It works on straightforward invoicing and payment - I invoice my colleague
for my professional services, he invoices the customer for the whole
project.  I'm responsible for my taxes, he is responsible for his.
Sometimes his company faces the customer, sometimes it's mine and the
invoices go the other way.

We generally agree internal pricing before quoting the client.

We also do work for other clients independently to ensure true self-employed
status.  By fixing the price of the contract between ourselves we ensure we
take an element of financial risk, we use our own equipment and this all
helps us to avoid the IR35 (UK tax) trap.

As one of the parties is a limited company, checks are made payable to the
company in that case, otherwise to the individual freelancer - we all keep
accounts of course.

Hope this helps.