i think that as long as you issue them with an invoice with a valid vat number then you should be fine, now wether that vat number is yours or someone elses thats a different issue. they are paying you so it is up to you to pay the tax on your earnings, they just have to worry about the vat. once their side is in order as regards vat then they are fine and you just worry about your side. if you are not going to declare it then you have two options, one enjoy spending it and don't worry about it or two put some aside incase you get an audit and have to pay the tax owed. Basically i would say issue the invoice, get the money and let them do what they have to do with the vat and enjoy the extra pocket money. and for those of you from the revenue i do not condone the no payment of tax ;-)
Cheers
~M


Well, I don't declare it for reasons such as the fact that I'm paid solely by the owner of the business from them "personally", so I'm not paid directly by the business itself...

However, it is very confusing, I want to send her a proper invoice so she can keep a record of payments, but I'm worried knocking up an invoice might be a bit dodgy if someone were to find out.

Kev