Sub contracting for company owners.

[arbaholic]

I'd disagree there, you have a duty of care to fulfill. That means that you need to ensure that anybody you subcontract to fulfills their obligations. This is why doing work for bigger companies involves so much paperwork. It is them fullfilling their obligations, and arse covering. If you know they are not insured, or paying tax and ni then you can be asked to cover the tax by the inland revenue.

 

R

 

I think it would be a drawn out and difficult procedure to get a company to pay tax on earnings that a sub contracted company didant pay for themelves. Surely the tax man will chase the sub-contracted company for the tax as its there profit?

 

I see your point about the paperwork, must be for a reason. If i used anyone as a subbie i would personally check their insurance. From my point of view they are working around my customers so for there sake should anything happen you want them to be covered. Your name is on the line to a certain degree so you want everything to be proper.

 

Tax however is upto them. Even if you did want to how could you possibly know and chek if they payed tax or not!

[ukminch]

What your saying makes sense, and I can't remember my source. I think it may have been a conversation with somebody about contractors liability and they said this included protection from subbies not paying tax, if you were to have an investigation. I think the answer they gave me was that you could just submit bits of paper with a fake company on to lower your tax bill.

 

I don't know whether or not you would be liable, but I'm not going to put myself in a situation where I could be. You soon learn whether someones legit or not by bits and pieces of conversation with them.

 

R