Subcontracting an individual

[kembljoe]

Hi,

I have a client which I am about to agree for a contract role. I am planning to then subcontract the work to an individual. This individual doesn't have a ltd company. Is it fine if I make the contract with the client via my ltd company and just subcontract the work to him and he just invoices to my company individually without any other company involved in?

[Old Greg]

Hi,

I have a client which I am about to agree for a contract role. I am planning to then subcontract the work to an individual. This individual doesn't have a ltd company. Is it fine if I make the contract with the client via my ltd company and just subcontract the work to him and he just invoices to my company individually without any other company involved in?

Is this individual set up as a sole trader?

[kembljoe]

Is this individual set up as a sole trader?

Not yet but can be a sole trader if it is easier for him to manage the accountancy than directing a separate limited company?

[fidot]

Beyond the usual concerns of sub contracting, (your reputation, cashflow etc), the additional risk with a sole trader as opposed to a limited company is that yourco would be liable for taxes if subby fails to pay up.

[WordIsBond]

We just had this thread: https://www.contractoruk.com/forums/...ne-trader.html

[ChimpMaster]

I had a sub come in to cover my absence for a few days. He didn't have a company (he did in the past but is retired now) so I just asked him to invoice me under his personal name and then I paid the remittance into his personal bank account. I made it clear (in writing) that his taxes were his responsibility.

However, this was a only a short stint and so I wasn't bothered about the comeback on taxes etc. I was more looking at the Substitute angle as another string on my bow against an IR35 attack from HMRC.