Subbies & taxation

[peteablard]

If you're doing the job and you have subbys working for you then really you should be registered for gross payments, (if that's the way you're looking at Dave) Otherwise the money would get taxed twice however this can be claimed back at the end of the year according to HMRC

 

[beanz]

Surely if you have a job for £1,000, get the other tiler to invoice you for £500. That will then be an expense, and will be subtracted before tax. You then pay tax on what's left. 😉

 

[peteablard]

It's not just an expense though you'd be paying someone and therefore you should be deducting their tax.......I think!

 

[beanz]

It's not just an expense though you'd be paying someone and therefore you should be deducting their tax.......I think!

When I did a tax course, which was a waste of time lol, I was told that you could use a subbie twice in a year. Anymore than that, they were to be treated as an employee... But out in the real world, it doesn't work like that. I do a lot of subbie work, and different builders work in different ways, because that's how their accountants say to do it. The guy I'm working for at the moment likes to be invoiced, so he's not paying the tax, the one before used to pay the tax on the whole lot, then transfer my wages into my bank account, and I'd pay tax on that separately.. The one before that would get the customer to pay me directly, or pay me cash!?!
All I know, is I'm paying the tax on what I receive, so I should be ok.. If they're doing it wrong, it's between them, their accountants, and the tax man. 😉

 

[Diggy]

HM Revenue & Customs: Are you a contractor or subcontractor under CIS?

 

[Alan.P]

If your invoicing for the job and then paying someone else you have a whole new ball game, you have to stop their tax out of their invoice which they then claim back and that you have to pay to hmrc but it's more involved, that's the jist of it at least, at least that's how my Brothers bookkeeper said it was ?