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Rhianrach


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subcontracters vat
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If you have two subcontractors and one of them you pay vat to will these subcontracters net value go as part of the final figure in box 7 on the vat return.

Regards Steve

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Steve
Stardoe


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Hi Steve,

If you mean you are paying a subcontractor's invoice which has VAT on it, then yes the net value of the invoice will be included in Box 7 on your VAT return.

Pauline

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Rhianrach


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Stardoe wrote:

Hi Steve,

If you mean you are paying a subcontractor's invoice which has VAT on it, then yes the net value of the invoice will be included in Box 7 on your VAT return.

Pauline


Cool thanks for the reply.

Steve



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RobH


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As will the amount for the non-vat registered subbie....not sure if that was clear.

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Rhianrach


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RobH wrote:

As will the amount for the non-vat registered subbie....not sure if that was clear.


Yeah had to think about that to be honest but decided it seemed right to add both net values to the figure. Cheers for verifying, getting a bit nervous about my first vat return, nervous enough to get the accountant to come and check it before it gets posted on tuesday. smile

Interestingly I found out (surprising what you learn smile) that a subcontracter doing the same hours week in week out after (forget the amount of months now, surprising what you forget) lets say x months by law becomes employed with full entitlement to holidays and subject to paye ersnic etc, sort of worried the owners when the accountant told them that as they have 2 permanent subbies.

 



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RobH


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HMRC have beenmessing about with the construction industry for years and every now and again it becomes the hot potato. They fear they are losing out on too much NIC but it will probably lead to a lot more black market casual workers. Shaun put a link a couple of weeks ago to the consultative paper that was published regarding false self-employment. There are ways that the subbie can be consoidered self employed e.g if they provide own heavy plant and machinery or employ someone else on the job too. You may find that some operate via a company in future.

Rob

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Rhianrach


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I think these two are going to have their hours varied apparently this also creates an image of self-employment.

Steve

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RobH


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Not really Steve, not if hmrc inspected. You can work for just 1 hour and hmrc can deem it as employed work. The onus is on the employer/contractor so they need to be careful. Chances are the contractor won't have an inspection but you never know. The fining regime is really tough at the moment for CIS types so hopefully all will be ok.

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Rhianrach


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It will be interesting to see how it pans out, they need to do something. I shall watch with interest and see how they deal with it, chances are they will employ them both, something they don't really want to do but appear to have no choice as they are very good at their job. biggrin

Steve


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