I am new to submitting tax returns could anyone offer any advice? My son and two friends are plasterers working for a builders firm. They are paid as contractors and are given payment for the meterage they complete. As self employed workers am I to assume no tax or national insurance is taken from their wage at source and it is up to the individual to submit their own tax assessment on the amount they receive? He has informed me that they received £1,200 between the three of them but the company witheld 200 for tax. Could it be they are paying the tax? Or could it be someone is pulling a fast one. Any advice from contractors welcome. Thanks
The company should also have given them a "voucher" to confirm the tax has been deducted - they ,then, send these to the tax office with their tax returns.
Depending on which Certificate it holds, a Company can be paid without deduction. In your son's case, most likely a deduction has to be made.
As Ginje says .............. they must get a voucher showing this deduction, so that your son and friends can reclaim the tax if necessary ............. or set it against their tax liability.
thanks for those answers much appreciated, could it be then that the gang is being taxed en bloc if this is the case does the NI have to be paid seperately, thanks again.
The group should not be taxed en bloc - each person should be given a voucher to show what tax has been paid for each. As far as NI goes, the "employer" has no liability to deduct and pay NI - this is solely the responsibility of the individual sub-contractor.