I have a team of great subcontractors working for me premanently but I understand I should operate PAYE for them and not CIS as they are classed full time workers. Is there anyway I can keep them as my subbies as self employed? Can I use an umbrella company to keep things this way?
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
How to keep regular self employed subcontractors as self employed and not PAYE?
Collapse
X
-
-
Originally posted by kentcontractor View PostI have a team of great subcontractors working for me premanently but I understand I should operate PAYE for them and not CIS as they are classed full time workers. Is there anyway I can keep them as my subbies as self employed? Can I use an umbrella company to keep things this way?merely at clientco for the entertainment -
This will confirm whether or not you should be operating a CIS scheme: HM Revenue & Customs: Are you a contractor or subcontractor under CIS?Comment
-
Originally posted by kentcontractor View PostI have a team of great subcontractors working for me premanently but I understand I should operate PAYE for them and not CIS as they are classed full time workers. Is there anyway I can keep them as my subbies as self employed? Can I use an umbrella company to keep things this way?
To err on the side of caution, make them your employees. If you continue as you are, make sure they are paying their taxes!!Comment
-
HMRC Status Enquiry
I would recommend you get the subcontractors to invoice you some element for materials supplied each month which is shown seperately on their invoices (that's if they do one for you?). Small items for materials can include for example screws, sealant, staples, nails, tape, paint etc.
If no invoices issued then prepare them yourself each month to match their payment and get them to sign as approved. This will help on any status enquiry from HMRC. May also help if they use a trading name rather than their own names and use their own tools.Comment
-
Originally posted by UK Contractor Accountant View PostI would recommend you get the subcontractors to invoice you some element for materials supplied each month which is shown seperately on their invoices (that's if they do one for you?). Small items for materials can include for example screws, sealant, staples, nails, tape, paint etc.
If no invoices issued then prepare them yourself each month to match their payment and get them to sign as approved. This will help on any status enquiry from HMRC. May also help if they use a trading name rather than their own names and use their own tools.Comment
-
Originally posted by LisaContractorUmbrella View PostWouldn't those costs then be classed as expenses which presumably would have a tax benefit?Comment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment