I am maintaining the records for a small lilmited co.
The company is registered as a CIS contractor and engages a small no on subcontractors for which monthly returns under the reules are made, tax withheld etc.
Th co occasionally has non CIS work undertaken by self employed individuals outwith the CIS scheme for work which falls outside of the CIS construction definition and pays these people on production of an invoice. The selfemployed individual provides their own materiasl etc to do the job and looks after their own tax and NIC liabilities.
My qu is does the company have to maintain any special records or make returns to HMRC in respect of these payments to self employed people , or are they just treated as business expenses ?
My feeling, depending on what type of job the subcontractor is doing, is that they would be either a direct cost or an overhead. The record that needs to be kept is a properly drawn up and detailed subcontractor's invoice.
Does anyone else know of instances when this might not be sufficient?
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