ABSTRACT
With modern building procedures many builders will find themselves operating as sub-contractors at one time or another. Also many sub-contractors will find themselves employing operatives directly. A thorough knowledge of the employment regulations relating to direct labour, labour only sub-contracting and/or supply and fix sub-contracting is vital in order to keep within the law. If the rules and regulations relating to direct employment or sub-contracting under the Inland Revenue Tax Exemption Certification regulations (714 and 715 exemption certificates) are not adhered to it could result in severe penalties-stiff fines or imprisonment. Indeed, over the past few years the Inland Revenue has been cracking down heavily on tax avoidance within the building industry. The laws relating to sub-contracting are complex and very detailed, and they require that special weekly and annual returns are made to the Inland Revenue. Unlike any other Government body, the Inland Revenue is entitled to visit a contractor’s premises at any time unannounced, to ensure that the contractor is carrying out correctly the requirements of the tax deduction scheme. The chapters contained in this book will guide you through the complex legislation, and if followed should keep you the right side of the law. The procedures for engaging a sub-contractor are fully detailed with examples of certifying documents, sub-contractors certificates and record sheets.
