Is he a sub-contractor?


T

Tommy

Hi All,
Because of changes in the law I will now need to "subcontract" an
electrition from time to time. If the sparky bills me say £250 for
work done how would I show this in my books? Both the sparky and me
are both sole traders (1 man bands) do I need to stop tax off his
bill? or just file his bill and write him a cheque?

Thanks

Tom
 
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M

Martin

Tommy said:
Hi All,
Because of changes in the law I will now need to "subcontract" an
electrition from time to time. If the sparky bills me say £250 for
work done how would I show this in my books? Both the sparky and me
are both sole traders (1 man bands) do I need to stop tax off his
bill? or just file his bill and write him a cheque?
You mustn't pay him unless he produces a CIS4

If the Card is Temporary, check the dates are valid

Make a note of

- Name of the subcontractor

- Card Number

- NINO (Nat. Ins. Number), or "System Identifier"

- Amount of Gross payment excluding VAT, cost of materials excl. VAT,
and the amount deducted.

Then show gross amount as usual (identifying VAT element if relevant) in
whatever records you keep.

But split payment - 18% of labour content to taxman, balance to subby. And
give him part 2 of a CIS25, send part 1 to taxman, keep part 3.

HTH
 

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