Hi, I've been meaning to ask this question for sometime but as it's not massively important, kept forgetting.
I have a few clients that are builders and contractors and have subcontractors who they pay through the CIS scheme working for them. Then they have the odd invoices from other builders - what is this called? I always call them subcontracts and non-subcontractors which sounds stupid.
Hi Rachel
Do you mean these 'non-subcontractors' (using your terminology) are not put through CIS? Should they be treated as sub-contractors really given the nature of the work they are doing for you clients, regardless of the length of the 'contract'/job?
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Thanks Joanne, they are plumbers, electricians etc so what I decided to do was just to set them up as suppliers and put the invoices to cost of sales then the type of trade.
Thanks for your help
Rachel
Subcontractors, in my mind at least (and Jo will tell you that my mind isn't always all there!) are people who do the work you sell, on your behalf... I don't think it matters if CIS is deducted? (I mean this from a name point of view, but Jo is right, you should check whether they SHOULD be having CIS deducted) Dont forget some will have exemption certificates so you wouldn'ta ctually deduct CIS
They are suppliers, yes, but they would be coded to the subcontractors nominal code (unless they were doing your office electrics - then they would go to repairs) hope that makes sense!
Example of non CIS -
So, if you had a web design business and you paid someone else to build the website you sold, they would be subbies, but they wouldnt suffer CIS
If the designer built your website, that would be web costs.
-- Edited by FoxAccountancyServices on Wednesday 18th of March 2015 09:15:47 PM
