Subcontractors bookkeeping

lorraine
lorraine Registered Posts: 404 Dedicated contributor 🦉
in General accounting discussion
Hello All,

I am fairly new to this, please could someone tell me are there any complications or things that I need to know with regards to the above. It's a courier business if thats makes any difference!

Thank you in advance for any of your kind help!

Comments

  • Psyche
    Psyche Registered Posts: 187 Dedicated contributor 🦉
    What do you mean by subcontractors? Do you mean you are doing bookkeeping for someone who is working as a subcontractor, or bookkeeping related to how the business is paying its subcontractors?
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    Or do you mean the filing there monthly subcontractor return?
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
    Sorry I wasn't that clear, I mean't that a guy has enquired about me doing the bookkeeping for him and he is a sub-contractor. Hope this makes sense

    I have never done bookkeeping for a sub contractor before, but have carried bookkeeping for self employed and ltd companies, what type of things do I need to be aware of if any.
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
    A-Vic wrote: »
    Or do you mean the filing there monthly subcontractor return?

    Is this only for the CIS- Construction Industry Scheme though? - I have been trying to search the HMRC website but it only refers to Sub Contracting in the CIS, or am I not seeing the info!
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
    Carrying out bookkeeping for a Sub Contractor

    I think I am over complicating things, sorry I'm new to this, I have been trying to work this out myself and have came to the conclusion that if he is a self employed sub contractor then the bookkeeping would be treated the same way as if it was a self employed person. I don't see that there would be a difference unless I'm missing something.
  • Raging Pineapples
    Raging Pineapples Registered Posts: 110 Dedicated contributor 🦉
    Does he work in the construction industry? (Painter/Decorator, Plumber, Tiler, Electrician, Scaffolder, that kinda thing)

    If so, when he does work for a Building Contractor the invoices he charges them will be paid less CIS Tax, and you may need to help him with his tax return.
  • clearaccounting100
    clearaccounting100 Registered Posts: 49 Regular contributor ⭐
    Raging Pineapples (gr8 name!) is right. He will be deducted tax at source if he on the CIS scheme, when he works for a Building Contractor, they will give him a payment advice showing the gross amount of pay then the amount of tax (CIS) they have deducted from this and then the net (gross less CIS deduction) The net is the figure that they are actually paying him. For bk keeping purposes the sale figure will be the gross figure. When doing the tax computation you will allow for his pa. then allow for the CIS tax he has had deducted at source, this will then give his tax liability or refund. Hope this helps :)
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
    This is all well and good when you are dealing with the construction scheme but Lorraine has already said that it is a courier business.

    I assume they take on subcontracted work from other couriers which just means you treat them the same as any other self employed person.
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
    Bluewednesday wrote: »
    This is all well and good when you are dealing with the construction scheme but Lorraine has already said that it is a courier business.

    I assume they take on subcontracted work from other couriers which just means you treat them the same as any other self employed person.

    Thank you all for your replies. It is a Courier business, so I have decided from the above that it will be treated the same way as a normal self employed person. Sorry I think I confused matters!!!!

    But again thank you for your answers at least now I have sorted my confusion.
  • Raging Pineapples
    Raging Pineapples Registered Posts: 110 Dedicated contributor 🦉
    Lol, our bad for not noticing the Courier bit at the top!! And who knows maybe you'll get a construction client next, lol, so it all helps! :D
  • lorraine
    lorraine Registered Posts: 404 Dedicated contributor 🦉
    Raging Pineapples wrote: »
    Lol, our bad for not noticing the Courier bit at the top!! And who knows maybe you'll get a construction client next, lol, so it all helps! :D

    nah, you have been v. helpful especially if I do get a CIS client lol, I have really appreciated everyones support lately on this forum. I have been doing bookkeeping full time for a ltd for over 3 yrs now, but when you go self employed it is another ball game, they don't teach you every thing in the class room or text books, but if they did it would take a very long time....

    I would like to end this with saying a very big thank you for all your support!!!!!! and may it continue and of course like wise if I can!

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