Hi,
When doing some building work for a client, I used the services of a self employed Plumber.
I am not sure which category to log the purchase for his services. Would he be classed as a sub-contractor as this situation was just a one off?
Thank you
Yes it sounds like “sub-contractor” would be the best fit in this case.
Thanks Glenn. I’m still unsure as when I registered with HMRC I stated I wouldn’t be using sub contractors as it would mean setting up a payroll so tax could be deducted before I paid them. Do you think if I used the “sub contractor” category this may be flagged up?
No problem!
This is just for general bookkeeping purposes, it wouldn’t normally show up on your accounts. I don’t know whether there’s any leeway on HMRCs part before needing to register for CIS taxes, perhaps if it’s a one-off type situation it may be fine?
I’m not an accountant so I’d say if you have any doubt it would be worth getting a professional opinion.
There’'s no leeway as far as I’m aware. They might not pick up on the odd transaction, but you would be safer to get the Customer to pay the plumber direct and knock that amount off your invoice to the Customer. That way , you are not employing a subcontractor.