Just finished my first week subcontracting

[rmc86uk]

It is the same at the firm who I have subbed to on a permanent basis for two years now. They pay us a day rate and we base it on 40 hours a week. They will then ask us to work a little extra each day but don't want to pay us for it as they say we are on a day rate. In their eyes working 8 hours or 10 hours is the same when on a day rate!

 

[ED17]

To answer the original question, I always used to get a 12 hour day when working away as a subby so that's what I paid mine (before HMRC stuck its oar in :tongue3: )

 

[oldtimer]

To answer the original question, I always used to get a 12 hour day when working away as a subby so that's what I paid mine (before HMRC stuck its oar in :tongue3: )

Can I ask what the HMRC did

 

[ED17]

Can I ask what the HMRC did

The first time they tried to claim around 12k in Employers NI & PAYE payments because they didn't see our subbies as subbies. We argued for around six months about it and they withdrew the claim. They returned about two years later and tried to claim 22k but failed again. They have silly ideas such as if a subby spends a day on site on price but has to trace a cable damaged by others then he should be paid as a subby for some of the day and PAYE for the fault finding!

 

[Jay Sparks]

When ever I do subby work, I charge them per hour. There is no set amount of hours but its usually 8/9 per day and at the end of each week, I send them an invoice for the total weekly hours x hourly rate. On my invoice is my UTR and they use this to pay 20% of my invoice total, to the very nice tax man. Then they pay me the rest. Its called the CIS scheme. They dont pay my mileage because this is deducted at the end of the year on my tax return. I also pay my own NI contributions. You need to invoice them for the total amount of hours you have done this week.

 

[VoltzElectrical]

When ever I do subby work, I charge them per hour. There is no set amount of hours but its usually 8/9 per day and at the end of each week, I send them an invoice for the total weekly hours x hourly rate. On my invoice is my UTR and they use this to pay 20% of my invoice total, to the very nice tax man. Then they pay me the rest. Its called the CIS scheme. They dont pay my mileage because this is deducted at the end of the year on my tax return. I also pay my own NI contributions. You need to invoice them for the total amount of hours you have done this week.

That's exactly what i used to do, and did very nicely out of it. CIS is a scheme of it's own.

I was on a day rate based on 10 hours. £10 an hour as a mate = £100 a day/ £500 a week. £15 an hour as a spark = £150 a day/ £750 a week minus 20%.

class 4 NI set up by Direct Debit.

Thousands out there doing the same.

Should they be on the books? Probably. But they won't be unless the system is dramatically changed and policed.

Tax return at end of tax year, deduct expenses (mileage/ accountant/ tools/ clothes/ personal allowance) and pocket the difference in the form of a rebate.

On the books now so all that is out of the window. Miss it sometimes. Not chasing the work though.

 

[Tidy Max]

Thanks Jay.

My issue there is i agreed a day rate with them prior to commencing the work. Not an hourly rate. It is my own inexperience that has let me down.

If your mileage is deducted at the end of the year on your tax return then who chooses what rate you are paid per mile? e.g. what is to stop you from claiming £1 a mile?

 

[ED17]

Thanks Jay.

My issue there is i agreed a day rate with them prior to commencing the work. Not an hourly rate. It is my own inexperience that has let me down.

If your mileage is deducted at the end of the year on your tax return then who chooses what rate you are paid per mile? e.g. what is to stop you from claiming £1 a mile?

It used to be 45p for the first 10,000 miles then 25p (I think) for the rest. You have to work out if it's better for you to claim mileage or claim running cost, you can't claim both!

 

[VoltzElectrical]

It used to be 45p for the first 10,000 miles then 25p (I think) for the rest. You have to work out if it's better for you to claim mileage or claim running cost, you can't claim both!

That's right. In the beginning I was claiming for tax, insurance, servicing, diesel etc..

But when I started doing 20K a year mileage I swapped over and just kept a mileage log in case I was ever investigated.

So in the beginning i was claiming say £500 insurance, £250 servicing, £200 tax, £1500 diesel, = £2450 tax deductible.

20K a year mileage = 10k @ 45ppm = £4,500 + 10K @ 25ppm = £2,500.

Total tax deductible motoring allowance = £7000.

No brainer.

 

[Englishman]

We've had two HMRC inspections and both ended up with them telling us that we owed them a small fortune by paying subbies who should have been PAYE because they didn't meet these guidelines. [h=2]Employed or self-employed?[/h]In order to answer this question it is necessary to determine whether the person works under a contract of service (employees) or under a contract for services (self-employed, independent contractor). For tax and NICs purposes, there is no statutory definition of a contract of service or of a contract for services. What the parties call their relationship, or what they consider it to be, is not conclusive. It is the reality of the relationship that matters.
In order to determine the nature of a contract, it is necessary to apply common law principles. The courts have, over the years, laid down some factors and tests that are relevant, which is included in the overview below.
As a general guide as to whether a worker is an employee or self-employed; if the answer is 'Yes' to all of the following questions, then the worker is probably an employee:

• Do they have to do the work themselves?
• Can someone tell them at any time what to do, where to carry out the work or when and how to do it?
• Can they work a set amount of hours?
• Can someone move them from task to task?
• Are they paid by the hour, week, or month?
• Can they get overtime pay or bonus payment?

Yes to all of those. Been agency CIS for over 8 months with a major housing association.

*******s.