For the past few years I have been completing my nephews and friend's Self Assessment's. They all work in the Construction Industry.
I've been asked by someone if a subby then becomes a contractor and takes on a person who will be paid through the CIS scheme ie taxed at 20% is any of it treated differently or will the contractor still be taxed at 20% and then he will tax his subcontractor at 20%. I guess the only difference will be the contractor will have to register with HMRC to pay the 20% tax to them what he has deducted from his subby?
I'm guessing that this subby is not a limited company in which case they cannot set off tax deductions they have suffered against that paid to HMRC under the CIS scheme. Have a read of this page containing the following extract.
