Tax at source for subbies grumps?

[JIMBOB187]

Hi all, especially Grumps.

Just a quickie, if I have a few guys contracting for me paid per sqm can they just send me an invoice that I pay complete to them and let them sort out their tax, NI etc or do I have to Tax them at source?

 

[White Room]

Do work for a plumber and deducts tax at source and then gives me a receipt for the monies after I've sent an invoice, I pay my own NI. I only work for him occasionally and I also supply materials.

 

[JIMBOB187]

Yeah this is how the house builders pay me as I supply aswell but these lads would just be supplying labour so I am not sure what to do, it would be easier for me to just pay the invoice and let them deal with deductions but I obviously want to do it correctly.

 

[Perry]

you have to contact the tax office before you pay them u will have to stop them 20 or 30 % only when the taxman oks it will post the details 😛ete
http://www.hmrc.gov.uk/leaflets/c7.htm

 

[Gazzer]

Basically you need to contact the tax office to obtain the subcontractors UTR number, this wil tell you how much tax to stop and then you need to give them (the subbie) written info of how much tax you have stopped.

 

[grumpygrouter]

As Pete says, Jimbob. You need to register as a Contractor otherwise you will be infringing the Taxes Act if you pay without deduction and that has not been cleared by HMRC.

 

[grumpygrouter]

...in addition, you must make deductions against labour charge and travel costs. Materials (if any) are not liable for deduction.

 

[Perry]

...in addition, you must make deductions against labour charge and travel costs. Materials (if any) are not liable for deduction.

hotels 2 grumps a which i think is out of order and we dont want upset them mate do we lol

 

[grumpygrouter]

hotels 2 grumps a which i think is out of order and we dont want upset them mate do we lol

Yes Pete, correct, hotels is part of "Travel and subsistence".

 

[JIMBOB187]

As Pete says, Jimbob. You need to register as a Contractor otherwise you will be infringing the Taxes Act if you pay without deduction and that has not been cleared by HMRC.

This is what I thought, thank's everyone. This one question would have taken me ages on hold on the telephoine to the tax office.