Sale of customer contracts

jamesm96

Hi guys,

I've a client who's always traded as a sole trader looking after a couple of (maybe three) customers in particular. However, he's now taken employment (working for a company owned and run by a friend of his) and is employed full time. The customers that he had looked after on a self-employed basis are now customers of his employers business.

I would like to suggest to my client that we value the customers that are now looked after by the employer, and the employer can treat the payments made to my client as payments for the purchase of customer contracts (until the value has been reached). My client will love it as he'll save loads of tax an NI, and the employer will be reasonably chuffed too as he'll save the Ers NI.

Anyone see a problem with this (apart from the retrospectiveness of it all!)