M

Martinm

Well Folks,

Im a self-employed electrician,working for a sub-contractor at the moment.

Need some advice on how to ensure that he is paying my tax and keeping the books straight, Surely I am entitled to ask him for a type of slip to keep record of my employmeny and tax payed..

Any ideas would be appreciated..
 
you should have some sort of paperwork showing that he has deducted tax. other wise, it's you that the suits with court papers will be chasing come the end of the financial year.
 
hahaha! tacks!! i once loaded a tatty with about 60 tacks and launched it at a neighbours house when i was 14 or some thing!! i got grounded for 3 weeks!
 
I think you sou should be issued with a payment and deduction statement for each seperate month

These used to be off the contractor,but they are now generated by the Revenue

The contractor should be notifying them of your earnings each month, they tell him what to deduct and issue the statement with a verification number for him to copy for your records

He will be in brown street more than you if he messes this up
 
is it compulsory for a subcontractor to get paid CIS? previous contractor did, new one doesn't. to be honest I prefer just getting it all and then paying the tax man end of year, instead of paying flat 20% tax all year round and then getting a lump sum back at the end of the year. it's all the same money, but i prefer getting it all now seeing as i'm starting up and have alot of expenses which i can put againts tax
 
Unless you have a Cis tax exemption, (which you basically have to invoice over £30,00 of Cis per tax year to obtain) he should be paying your Cis, if he is paying you gross then he should not be, but as long as your paying your tax and declaring it like you should it's his problem and he will get tugged over it not you, you have also got to be careful that you actually qualify as a sub contractor too, hmrc are getting hot on this depending on your situation you may be classed as an employee, and you should also have a contract in place with the contractor declaring you are a subbie
 
He needs to give you a business headed stationary with details ie how much he paid you and the taxman if he puts you off or refuses then alarm bells should be ringing in your head. You need to contact the Inland Revenue and they can tell you if he is paying your tax plus do you have other sources of income because the taxman is not happy if you are subcontracting with only one firm ie you should have at least 3 sources of income. So if you earn say £29000 of him and he pays you £24000 and the taxman £5000 thats about right so if you owe more then the taxman gets you to pay . ie if you have a 900L tax code thats £9000 if you earn £29000 - £9000 = £20000 at 25% tax thats £5000.

Now if he has not paid then the taxman will say to you that you earned £24000 less £9000 =£15000 at 25% =£3750 tax bill and if you aint got it then its fines penalties and a personal loan putting you further in a hole so do not suppose he is sorting or paying it find out because there is a lot of guys out their who have been badly burned
 
Can someone clarify something? I have a mate who works with me on bigger jobs. We are both self employed, I.E declaring our earnings seperately. I get paid by customer and give him his daily rate. I put in my tax return my profit less the money I pay him (plus parts etc). He is doing his own books and declaring the income he gets from me and paying tax on his earnings. Is this right? We are talking about less than £6000 a year.
 
Best EV Chargers by Electrical2Go! The official electric vehicle charger supplier.

OFFICIAL SPONSORS

Electrical Goods - Electrical Tools - Brand Names Electrician Courses Green Electrical Goods PCB Way Electrical Goods - Electrical Tools - Brand Names Pushfit Wire Connectors Electric Underfloor Heating Electrician Courses
These Official Forum Sponsors May Provide Discounts to Regular Forum Members - If you would like to sponsor us then CLICK HERE and post a thread with who you are, and we'll send you some stats etc

Advert

Daily, weekly or monthly email

Thread Information

Title
Tax
Prefix
N/A
Forum
Business Related
Start date
Last reply date
Replies
23

Thread Tags

Advert

Thread statistics

Created
Martinm,
Last reply from
Plonker 3,
Replies
23
Views
3,761

Advert

Back
Top