self employed subcontractors
Author
Discussion

johnnybegood

Original Poster:

149 posts

189 months

Wednesday 26th September 2012
quotequote all
Bit of a conundrum.

A client of mine has a company but all his operatives are self employed (i am guessing for tax purposes)

He is now in a dipute with another company who are not paying him as in their T&C's they stat that a contractor cannot sub-contract any works without out their permission.

As the guys work under his company banner can they be considered sub contractors even though they are self employed?

help appreciated

Eric Mc

125,606 posts

294 months

Wednesday 26th September 2012
quotequote all
That's exactly what they are - self employed sub-contractors.

rog007

5,828 posts

253 months

Wednesday 26th September 2012
quotequote all
This is an interesting one, and one I suspect for our legal colleagues. From where I'm standing, he may not have met the terms of the contract.

Self employment and subcontracting are all really useful means of providing a service. But unless directly employed, they are not directly employed, and thus remain self-employed and subcontractors.

Two things stand out here for me; read, and re-read contracts; and secondly, having staff working for you who are self employed brings advantages, but they then cannot become 'employees' just to suit. Good luck!