Taking on sub-contractor. Help..?

[webbycrash]

Hi,

I've recently set up my limited company and am now looking to take on a sub-contractor to work through my company. Looking for general advice as to how that would work from a set-up perspective, accounting and tax, insurance, etc.

Any and all help greatly appreciated.

Thanks

[ChrisPackit]

Make sure you're not on the Flat VAT scheme or else it'll cost you a lot more than you reckoned.

[SueEllen]

Hi,

I've recently set up my limited company and am now looking to take on a sub-contractor to work through my company. Looking for general advice as to how that would work from a set-up perspective, accounting and tax, insurance, etc.

Any and all help greatly appreciated.

Thanks

If there are a sub-contractor then all you need to do is ensure they work from their own limited company then any insurance or tax implications are for them to sort out.

In your case I would make sure you have a written contract stating the insurance that you require to fulfil the client needs. I would definitely make sure they have professional indemnity insurance, and possibly public liability insurance. Also state payment terms in the contract and only pay into the bank account of the company. (PCG has templates.)

In regards to meeting with them to discuss things unless your home insurance covers it you are going to have to use hotels, rented office space or coffee bars. Coffee bars are the worst and rented office space is over the top.

[xchaotic]

Could anyone comment on the scenario where your subcontractor is from another EU country, then they do not add VAT (which you can't reclaim via FRS anyway).
If I'm thinking straight, that should put them at an unfair advantage over the UK locals (which have to pay the VAT that they added back to HMRC)

[el direct ltd]

Sub Contr

When taking on your first subcontractors you need to make sure you have an agreement in place for the works, and also a mechanism for paying them. This may be the CIS scheme if the work is construction related, or they may be PAYE if you check the HMRC rules. There are loads of places that offer payroll and accounting services exactly for this, and loads of places that deal with contracts that aren't lawyers so it doesn't have to cost a fortune!

My one piece of advice is don't forget about tax and keep excellent records!

[TheFaQQer]

You resurrected a two year old thread to add that as your first post??

[northernladuk]

You resurrected a two year old thread to add that as your first post??

The description on that card always makes me laugh, particularly the last one. Very good.