passing jobs on ???

[perfect1000k]

hi there got a question if somebody dont mind answering

say i was self employed and took a job on i didnt have time to do it. say its worth £2000 and i passed it on for say £1500 to another firm i would keep £500 and pay the £1500 to the other firm who done the job what would the tax be ? would it be on the £500 i had made or on the whole £2000

would i have to have an invoice for the £1500 from the firm so its like i had made £500 profit or could i pay that out in cash ?? or would they wonder were the £1500 had gone lol

any answers would be great

 

[telectrix]

if you passed the job to a self employed contractor, you would need an invoice from him for the £1500, declare the £2000, and claim the £1500 against, so you end up paying tax on the £500 you have made as profit.

p.s. if you've got that much on , you could pass me some. i'm a bit quiet at the mo.

 

[perfect1000k]

it was just a example to be honest as i have been asked to start some work for my builder mate me doing electrical and my brother doing his heating but my bro has a job and im self employed i would have to pass the heating systems on when my bro couldnt do them. so i would defo need an invoice off the fella who done the heating ? what if he done it as a foreigner

 

[DurhamSparky]

and me!! mind you im now fully booked for 2 weeks as of a little phone call today!

 

[telectrix]

don't touch anyone doing it as a foreigner. then you could be liable for the tax on what you paid him. also, if he does a bodge job. the brown stuff will hit your fan.

 

[perfect1000k]

don't touch anyone doing it as a foreigner. then you could be liable for the tax on what you paid him. also, if he does a bodge job. the brown stuff will hit your fan.

so to be safe alway get invoiced is it that straight forward pay him his £1500 and pay tax on my £500 profit

 

[telectrix]

about right. say you did the job for 2000, and paid 1500 for materials. you'd claim the 1500 just the same.

 

[ukpablo]

i dont pass anything on really, if they cant wait for me to fit it in then i just say that i cannot do it and they will have to find somebody else! The more u pass on may scupper u in the future on reccomendations etc. I usually find that if i have been reccomended than they will either wait or its not worth worrying about. This only ever happens on rare occasions mind..........................business is not booming, but i have enough to keep the wolves from the door! Plus, as telectrix said, if it all goes wrong, ur name will stick with it!