CIS - piece work

CIS - piece work

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I'm seeing some sub-contractor clients being switched to piece work where on the face of it they are tendering for the work. Is this a widespread trend? Some contractors are seeing it as good business practise anyway but I suspect others will find it difficult to produce tender "documents" and invoices which refer to them
John Ruis

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By AnonymousUser
20th Feb 2007 11:16

I have advised this too ...
to a couple of my larger contractor clients. I know that status law isn't actually changing in April but one must assume that the declaration that contractors now need to make will make this a much easier area for HMRC to instigate penalties. This is particularly important, in my view, where labour only is being provided. I have a painting contractor client and I have suggested that he insists on an agreed job rate from his subbies. Given he supplies materials (for cost reasons) and equipment is scant, there is not much else to do to avoid employment status.

PS ... if your subbies can't do a tender ... they are probably employees ... end of problem!

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By User deleted
19th Feb 2007 13:51

Status issue point
I expect it's regarded as a positive contractual issue regarding the current hot topic of the status issue.

Having said this, I was recently involved with a contractor/employer records review where day rates (rather than piecework) were sometimes paid and the arrangements were accepted as self-employment rather employment.

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