subcontractors

[milliemoocow]

what are the pros and cons of taking a subcontractor in the building industry on the books?

[anniebird]

What do you mean by 'on the books'?

If you wish to pay the sub contractor under the CIS rules then the previous answer is fine but if you mean you wish to take them on as an employee on PAYE basis then you have to consider the following as well:-

You will be liable for Employers NI.

You will be liable for Holiday Pay.

You may be liable for Sick Pay depending on contract terms.

You may be liable for Down Time Pay depending on contract terms.

It is more difficult to sack an employee. With a sub contractor you just do not give them any more work.

You may be liable to Redundancy Payments.

These are the main points to consider.

[milliemoocow]

thanks for that anniebird, are there any pro's?

[Tom Braider]

It;s not a matter of pros and cons. If your contract with a worker is one of employment then you must use PAYE, not CIS. If the worker is not an employee then he or she can't be "on the books". A lot of people think they can choose their own employment status or that of their wokers but it's not that easy. Read the HMRC leaflet here
http://www.hmrc.gov.uk/new-cis/cis349.pdf

[jedimistress]

Pros. You can unregister for the CIS scheme if they are your only subbie. So less ongoing paperwork and risk of HMRC fines very month. HMRC won't be monitoring your CIS returns and request his employment status if he works with you for any length of time.