Subcontractors

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Gezza

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Hi all.

I am starting up my own electrical business shortly and was hoping i could pick someone's brain on a few legalities. I will have a sparky working for me as a sub contractor and was wandering if anyone knows what legal obligations (if any) i would have to him as a sub contractor not an employee? ie: Tax and NI.

I look forward to hearing back from someone in the know.

 

Theorysparky

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Hi all. I am starting up my own electrical business shortly and was hoping i could pick someone's brain on a few legalities. I will have a sparky working for me as a sub contractor and was wandering if anyone knows what legal obligations (if any) i would have to him as a sub contractor not an employee? ie: Tax and NI.

I look forward to hearing back from someone in the know.
Will he be working for you only ???? or will he go off and work for himself ??

Does he have his own business ?????

Is he cis registered ???

There are ways to get around this but more info required

Regards TS

 

Gezza

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Hi TS

Thank you for your response.

No, he won't work solely for me, he will work for others as a sub contractor too. He doesn't have his own business and is CIS registered.

I will only use him when the work load increases.

Regards

Gezza

 

Theorysparky

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Gezza

You have 2 choices

firstly he can invoice you and you just settle it,,leaving the tax/ni for him to pay

Or you can register online with the Inland Rev. as an employer/agent and deduct tax via the CIS system.

You can't follow the second choice if you are CIS registered yourself.

Hope this helps

 

Gezza

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TS

That is eaxactly what i thought, just wanted a second opinion.

Thanks mate for taking the time.

Gezza

 

grumpy old spark

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GezzaYou have 2 choices

firstly he can invoice you and you just settle it,,leaving the tax/ni for him to pay

Or you can register online with the Inland Rev. as an employer/agent and deduct tax via the CIS system.

You can't follow the second choice if you are CIS registered yourself.

Hope this helps
Hi

I think that the above info is wrong as far as I am aware, the only way you can legally pay a cis reg sub contractor who works for you is for you BOTH to be reg with the tax authority,who require you to be in possession of the UTR number of the subby ,you then deduct 20% for tax off the invoice for Mr tax man,if the subby does not give you a UTR then you have to deduct 30% from his invoice to hand over to M tax man.(we are now are own tax collectors)and Mr Brown has given us small businesses so much help and support over the last years has'nt he. LOL then cry !!!

cheers

GOS

 

Theorysparky

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Gos

He cant be registered as a CIS contractor

but can be as a CIS employer

didnt explain it very well :(

 

Theorysparky

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HiI think that the above info is wrong as far as I am aware, the only way you can legally pay a cis reg sub contractor who works for you is for you BOTH to be reg with the tax authority,who require you to be in possession of the UTR number of the subby ,you then deduct 20% for tax off the invoice for Mr tax man,if the subby does not give you a UTR then you have to deduct 30% from his invoice to hand over to M tax man.(we are now are own tax collectors)and Mr Brown has given us small businesses so much help and support over the last years has'nt he. LOL then cry !!!

cheersGOS
At least his name fits

:^O :^O:^O

 
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