Subbing work question

Discussion in 'Managing Your Business' started by Jake, Jun 13, 2015.

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  1. Jake

    Jake Grand Master
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    When subbing work, do you have to pay taxes for the sub workers? What's the law on it all?
     
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  2. Smurf

    Smurf Banned
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    Normally you would just invoice the firm you sub for like any other customer. I don't know many firms that would deduct the tax at source for your or pay your stamp for you so it's up to your to sort that out yourself.
     
  3. Jake

    Jake Grand Master
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    I mean if I was to sub my work out smurf...
     
  4. daveyboy

    daveyboy Legend
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    You would just pay the sub contractor the rate you agreed on and keep his invoice for your records the rest is up to him
     
  5. Jake

    Jake Grand Master
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    Sounds like a better idea than employing then?
     
  6. daveyboy

    daveyboy Legend
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    Yep but you have to be carefull
    If you are a windie giving window cleaning work to someone you have to be able to show they are a seperate company subcontracting some work rather than a permanent part time employee of yours
    So they would have to be already registered as a self employed window cleaning company
     
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  7. Jake

    Jake Grand Master
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    I see, thanks Dave
     
  8. daveyboy

    daveyboy Legend
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    If for example they were just working for you 2 days a week it is a case of showing that you are so busy you are passing on work to this other company for a price rather than getting someone to work for you
    Not hard really but always good to cover your own **** or you'll be liable for employee's insurance etc
    That's why last time i did that for a company i took as much work as i wanted daily and gave him 20% of the value once done
    He had other employees working hourly rate so could justify me as a subby covering work his company was too busy for due to sick/holidays etc even though i worked for him 5 days a week
    I also did some of my own customers and was registered with hmrc as a company in my own right
     
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  9. Jake

    Jake Grand Master
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  10. Smurf

    Smurf Banned
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    Yep that is what I said too:D

     
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