Hi, I have a question which I'm hoping someone might be able to help me with.
My other half works for a company that uses subcontractors. These people are all verified, paid each week and payment & deduction statements issued each month. What my other half is concerned about is that no invoices have ever been received from the subcontractors. The company pays them based on the hours work, makes a deduction for materials, transport etc, giving their total pay figure.
My OH has been told to carry on doing as he's doing without the invoices, but he's just concerned in case anything comes back onto him, as his understanding is the invoices should be received and kept as part of standard record keeping.
I appreciate that I may have all my wires crossed here and this may simply be standard practice, however I wanted to check as he is a little worried.
Hi, I have a question which I'm hoping someone might be able to help me with.
My other half works for a company that uses subcontractors. These people are all verified, paid each week and payment & deduction statements issued each month. What my other half is concerned about is that no invoices have ever been received from the subcontractors. The company pays them based on the hours work, makes a deduction for materials, transport etc, giving their total pay figure.
My OH has been told to carry on doing as he's doing without the invoices, but he's just concerned in case anything comes back onto him, as his understanding is the invoices should be received and kept as part of standard record keeping.
I appreciate that I may have all my wires crossed here and this may simply be standard practice, however I wanted to check as he is a little worried.
Yes, that would concern me. Paying sub-contractors on a purely hours worked basis puts them perilously close to being employees. I assume they are submitting time sheets or similar. HMRC are cracking down on subbies who they think should be on PAYE. When we last had an inspection one of the things they wanted to see was not only copies of our sub-contractor invoices but their quotes and they asked my boss how she knew whether the labour/materials figures were correct.
If the sub-contractor is a limited company they don't in our experience usually delve quite so deeply as long as you don't use them regularly for more than 6 months but more than that and they dig.
