Self Employed Tax
#1
Self Employed Tax
I am a sole trader. I was recently sub-contracted to carry out some work for a local company. Work completed, invoice made, and today I received payment.
My invoice was made up of labour and materials. Off the labour charge the company i was working for have deducted 20% tax. I pay my own tax at the end of each year.
I dont pretent to know everything about business but I have been doing this for 4 years now and I have never seen this done before.
Anyone know what the crack is?
My invoice was made up of labour and materials. Off the labour charge the company i was working for have deducted 20% tax. I pay my own tax at the end of each year.
I dont pretent to know everything about business but I have been doing this for 4 years now and I have never seen this done before.
Anyone know what the crack is?
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#8
Scooby Regular
Plenty of info here - http://www.hmrc.gov.uk/cis/intro/con-or-sub.htm#2
Just register and you'll be sorted for subcontracting in the future. Obviously the rest of the time things are just done as normal. It's actually quite a good thing when the majority of your tax is paid like this, as it means you don't have to set much aside for the end of the year etc.
#9
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So, how does it work if you're charging a mark-up on the materials? Presumably in that case you just put aside some money to cover the tax on the mark-up - right?
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