Can a sole trader subcontract out work?

[leelee]

Hi,

DH is a tradesman & was recently approached to carry out works for a chain of shops (too many for him to do alone and in the time he has available as he minds one of our children after school). He has several friends who are set up as sole traders also in the same trade.

Could he, as a sole trader, subcontract out the work (think that is the correct term?) and say charge the client for example 1,000euro per shop and pay his friend to carry out the work for 900 (ie. keeps 100 profit for organising etc.) and leave it to his friend to pay necessary taxs on this?

Or is this just too messy as it would show my husband with a very high income when he was really only earning 100euro and not 1000euro per shop?

 

[ClubMan]

Or is this just too messy as it would show my husband with a very high income when he was really only earning 100euro and not 1000euro per shop?

Surely if he is taking in €1K and paying out €900 then his net income here is €100 in fact and on paper? Does he not have an accountant to advise on this matter?

 

[Nige]

No reason he can't, but he should talk to his accountant about his obligations (if any) for Relevant Contracts Tax on payments to subcontractors.