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Mark Wileman

Sole Trader Sub-Contracting to Tree Firm.

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Good morning,


I have some bone questions to ask about sole-tradering, the HRMC website seems to just focus on building trade sole traders in the subcontracting context.

- If the tree work is nothing to do with a building development etc then I do not have to be part of the CIS scheme?

- As a non-VAT registered contractor I don't include VAT anywhere on my invoices?

- I invoice the company I'm working for the full amount of my labour, and receive the full amount (it's up to me to sort out my tax)?

- How much % of the year can I work for the same company without losing "self-employed" status (included in this is, if some of work during the year is PAYE to a seperate company is that included as "working for someone else" even though it's not a sub-contracting context?


Thanks in advance.

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There is no specific percentage before you become employed.  If the main contractor is using you for example every Monday, Tuesday and Wednesday you are employed part time.  Sub contracted staff should be to cover specific contracts (from one day to x months) where additional staff are needed or on an as a when basis.  It's an area where employers and subbies have very different views.  There is a questionnaire you can complete on HMRC site which will tell you if you should be employed.


With regards to CIS, the deduction would be from the developer to the main contractor.  The contractor cannot withhold money from you just because he has had money withheld unless he is CIS registered and therefore obliged to deduct.  The company you work for could be registered for CIS (especially if they are multi dicipline).  If this is the case then they can deduct for ALL work unless you get an exemption from HMRC.


You are correct regarding VAT.  If you are not registered you cannot charge VAT.


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