Subcontractors.
If you work, self-employed, for someone who doesn't own the building you could be a sub-contractor in the building trade and subject the the Construction Industry Scheme (CIS) rules.

Your contractor will be obliged to deduct tax from your payments and pay you the net amount, unless you qualify for gross payment status.

Deductions
The contractor will deduct 30% of the amount he pays you for work done, unless -
  1. you have registered with HM Revenue & Customs as a sub-contractor, and
  2. you give him your trade name (your own name if you don't have a trading name) your National Insurance Number and your Self Assessment Number (this will be on your tax reurn or payment statement)

Gross Payment Status
To qualify to recieve payments gross under the CIS rules, you need to pass three tests.
  1. You must be a business trading with a business bank account, etc.
  2. You must have a good compliance record with HM Revenue & Customs
  3. You must have sufficient turnover (30,000 pounds per annum per owner of the business).

In addition if you are registered for VAT you may been involved in the CIS VAT Reverse charge scheme.

For more information contact Will Johnson on 07967 522374.