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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5829
Experience:  FCCA FCMA CGMA ACIS
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I have recently started a company and will be supplying

Customer Question

I have recently started a company and will be supplying labourers and other staff as part of this. Can I pay the workers as if they are sold traders or do I need to pay tax and National insurance for them?
Submitted: 6 months ago.
Category: Tax
Customer: replied 6 months ago.
Also what is the simplest way to pay them. Can I not pay them and they pay their own tax and National insurance via a self assessment?
Expert:  bigduckontax replied 6 months ago.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

You can, but beware. The construction industry has been bedeviled with tax evasion so you may have to use the Construction Industry Scheme to deduct Income Tax (IT) ns National Insurance (NI) contributions.

I do hope that you have found my reply of assistance.

Customer: replied 6 months ago.
Ok so my company is registered as a employment agency so can I supply people to a company I know, charge the company and just pay the workers at the rate agreed directly intotheir bank?
Expert:  bigduckontax replied 6 months ago.

Yes, the 'company you know' is responsible for applying the Construction Industry Scheme (CIS).

Customer: replied 6 months ago.
Ok, and if no tax or ni is paid by the worker that is not down to me as the agency supplier?
Expert:  bigduckontax replied 6 months ago.

No, but to the organisation you supply.

Customer: replied 6 months ago.
What if I was supplying multiple companies and invoicing them for staff as a ltd company?
Expert:  bigduckontax replied 6 months ago.

My advice was based on that principle.