Can anyone help with clearing up my confusion with regard to paying a sub contractor under the CIS scheme please.
A couple of years ago my husband wanted to use a sub contractor to help him because he had a lot of work. He was told by an accountant that he would have to stop the subcontractor tax at 20% or 30% depending on whether the sub contractor was CIS registered or not. My husband is CIS registered and, at the time, was fitting kitchens and bathrooms as well as installing central heating. In the end he decided it would be too much aggravation so didn't employ anyone.
Last year he did a lot of work subcontracting to a company installing bathrooms, mainly for disabled. He worked for them for about 9 months and they never made any stoppages at all. He queried this with an accountant and was told the company were in the wrong and would possibly get into trouble and face a large fine. It seemed odd as the company have been trading for about 25 years and have a quite a few subcontractors.
In June this year he started sub contracting with an emergency plumbing service and they, again, have not made any stoppages. I find it difficult to believe that another established company either does not know the rules or is flouting them so can anyone let me know the true position
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