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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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A friend's son has done some work company - 8 days

Resolved Question:

Hi, A friend's son has done some work for our company - 8 days - £1000 for which he gave us an invoice. Asked for UTR No and been told he doesn't have one but gave his NI No. My feeling is that either we should pay the tax and ni or deduct it, but then it means becoming involved with RTI. I am a member of "the old days". What is the current rule?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

What business is your company in and what did your friend's son do in the 8 days he worked for you exactly?
Customer: replied 2 years ago.

Installation of security systems (outside the scope of CIS). General labouring and assistance on site

Expert:  TonyTax replied 2 years ago.
Thanks.

The detailed rules for CIS are in CIS340 here.

If the bulk of your work is not covered by CIS, then I'd pay the feee gross even though there may have been a little labouring. See paragraph 2.11 of CIS340. You might also be covered by paragraph 2.19. See paragraph 2.6 for a defintion of a "deemed contractor".

I'd certainly keep a note of your friend's son's name, address and NI number in case of any query from HMRC.

I hope this helps but let me know if you have any further questions.
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