A payslip?

Contractors will have to provide a monthly "payslip" to all subcontractors paid, showing the total amount of the payments and how much tax, if any, has been deducted from those payments. The contractor will have to provide this for each tax month as a minimum. Contractors will be allowed to choose the style of the "payslip" themselves but certain specific information will have to be provided including:

• the contractor's name
• the contractor's employers' tax reference
• the tax month to which the payment relates
• the subcontractor's name, unique tax reference or specific subcontractor reference
• the gross amount of the payment
• the cost of any materials which have reduced the gross payment and
• the amount of any deductions.

It may well be that contractors want to include such payments as part of their normal payroll system. However, if this option is chosen, it will need to be clear that although payslips are being generated for those individuals, they are not employees and have clearly been classed as self-employed.

We would welcome a call or email if you have any questions on anything we have covered in this newsletter.

We offer a comprehensive service to all types of businesses and individuals, and have the benefit of membership of the UK200 Group of Practising Accountants, enabling direct access to expertise in areas outside our normal work.

Regulated to carry on audit work for a range of investment business activities by the Institute of Chartered Accountants in England and Wales

Goldwyns | Rutland House | 90/92 Baxter Avenue | Southend on Sea | Essex | SS2 6HZ |
Tel: 01702 351412 | Tel: 01702 353071 | Fax 01702 431453 | Web www.Goldwyns.co.uk| Email| info@goldwyns.co.uk