From employment as a subcontractor

Self-employed individuals are required to file a tax return — the UK tax refund process.Many Poles working mainly in the broader construction sector operate as subcontractors performing work for a main contractor.
A subcontractor paid by a contractor should receive monthly subcontractor statements. These are summaries of payments and income tax deductions, as regulated by the UK tax calculator.

 

What does a subcontractor statement look like?
There is no single standard format. The monthly statement for a subcontractor may be issued in either paper or electronic form. Both are valid and can be used to claim a UK tax refund.

 

What information does it contain?
The contractor is required to provide predetermined information that allows for the tax identification of both themselves and the subcontractor.

 

They include:

• the contractor’s name and their tax reference number (Contractor’s name and Employer Tax Reference)
• the period to which the subcontractor statement refers
• the subcontractor’s name and UTR (Unique Taxpayer Reference number)
• the gross amount paid to the subcontractor and the deductions for Income Tax, as well as any reimbursement for materials if the subcontractor purchased them out of their own pocket.

 

Here’s a quick summary regarding subcontractors. For further questions or to complete your tax return, please visit our office. MB TAX ADVICE.