Subcontractors

6 replies

Desolate2nite · 02/04/2020 22:26

Does anyone know if subcontractors in the building trade can claim anything during the lock down. My friend works for a firm and they deduct 20% from his pay every week but he if not an employee. Thanks

OP posts:

Hannah021 · 02/04/2020 22:29

by subcontractor you mean self employed?
who pays his taxes?

Yambabe · 02/04/2020 22:31

Yes he will be eligible for the self-employed grant but not until June.

It'll be 80% of his average monthly profits for the last 3 years as long as he's been doing his self-assessment returns each year.

Original poster

Desolate2nite · 03/04/2020 14:05

His tax is deducted from his money every week by the firm he is subcontracting for

OP posts:

emma123456 · 04/04/2020 16:26

He can complete his 19/20 Return next week and claim a refund if one is due. He’s self employed so like everyone else that is self employed, he will have to wait until June.

Isleepinahedgefund · 04/04/2020 16:43

He is self employed but on the Construction Industry Scheme (CIS) which is why he has money taken each week. It's not the same as PAYE as he will need to do a tax return to balance things up. CIS is to make sure HMRC get some money up front - it prevents the accrual of huge tax debts.

www.gov.uk/what-you-must-do-as-a-cis-subcontractor

AnotherEmma · 04/04/2020 16:45

"He’s self employed so like everyone else that is self employed, he will have to wait until June."

Self employed people can claim Universal Credit now if they are eligible, to tide them over until June.

Flip