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Tax implications to paying a sub contractor

Tax implications

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Hi, what are the tax implications to paying a sub contractor as a limited company

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By lionofludesch
23rd Nov 2021 16:03

Depends. What trade are you in ?

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By Sophie Evans
23rd Nov 2021 16:05

Pest control, and the subcontractor a web developer

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RLI
By lionofludesch
23rd Nov 2021 16:13

Just pay his invoice.

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By Paul Crowley
23rd Nov 2021 16:15

Good job you asked
My purported answer would have caused all sorts of problems

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By David Ex
23rd Nov 2021 16:20

Paul Crowley wrote:

Good job you asked
My purported answer would have caused all sorts of problems

Read the OP several times and still can’t see the word “please”. Whatever happened to common courtesy?

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Replying to Paul Crowley:
RLI
By lionofludesch
23rd Nov 2021 16:33

Paul Crowley wrote:

Good job you asked
My purported answer would have caused all sorts of problems

[chuckle] Assume nothing.

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By Leywood
23rd Nov 2021 21:06

So much wrong with the OPs posts, just shows, probably not to the OP, how a dearth of information can cause completely and utterly wrong answers to be given. Scary.

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RLI
By lionofludesch
23rd Nov 2021 21:17

Leywood wrote:

So much wrong with the OPs posts, just shows, probably not to the OP, how a dearth of information can cause completely and utterly wrong answers to be given. Scary.

Like Paul, I was considering saying, verify and deduct 20% tax.

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By Sophie Evans
23rd Nov 2021 16:21

thank you lionofludesch, and as they are self employed and not VAT registered this would go down as T9 and have no tax implications is that right?

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RLI
By lionofludesch
23rd Nov 2021 16:32

Sophie Evans wrote:

thank you lionofludesch, and as they are self employed and not VAT registered this would go down as T9 and have no tax implications is that right?

Ah - I'm guessing you're a Sage user who assumes everybody else uses Sage.

Jason is your man for tax coding.

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Replying to lionofludesch:
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By Paul Crowley
23rd Nov 2021 16:47

T9 Example Wages
Does not get entered on the return as an input expense in box 7

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RLI
By lionofludesch
23rd Nov 2021 16:57

I've never been too fussy about box 7.

But did we not agree some years ago that supplies by non-registered folk should be in there?

I'm cool either way with what you decide. No VATman is going to come amd assess the difference.

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Replying to lionofludesch:
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By Paul Crowley
23rd Nov 2021 17:07

I always thought a VATable thing bought from a trader that is not registered remains a VAT able thing
HMRC list of exclusions does not include
And anything else not mentioned above that you bought from a non registered trader
HMRC do not care, but then does Sage?

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By SXGuy
23rd Nov 2021 17:44

I'm sure there are plenty of sage people who genuinely believe T9 is a recognised vat rate.

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By lionofludesch
23rd Nov 2021 17:51

SXGuy wrote:

I'm sure there are plenty of sage people who genuinely believe T9 is a recognised vat rate.

[chuckle]

Probably.

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By Tax Dragon
24th Nov 2021 07:43

Is your subbie going to build the website?

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By OldParkAcct
24th Nov 2021 08:02

If construction of a website is involved, surely this falls under CIS…. As an unverified subcontractor then you need to deduct 30%.

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Replying to OldParkAcct:
RLI
By lionofludesch
24th Nov 2021 08:23

OldParkAcct wrote:

If construction of a website is involved, surely this falls under CIS…. As an unverified subcontractor then you need to deduct 30%.

[chuckle]

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By SteveHa
24th Nov 2021 10:20

Oh dear!

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