Sole Trader Subcontractor Agreements

Sole Trader Subcontractor Agreements

Contractors, whether by default or by necessity, will sometimes need to employ the services of sub-contractors.

The Sole trader Sub-contractor Agreements in this subfolder will give contractors considerable flexibility in rendering their services, allowing for an increase in working capacity and, in many cases, in specialist knowledge or skills. Especially relevant in the construction industry, but also valuable in many other sectors, Sole trader Sub-contractor Agreements allow contractors to take on additional self-employed workers on a short (or fixed) term basis.

These forms of agreement are designed to be used where the subcontractor is to be an individual, but we have also provided in the accompanying Company Subcontractor Agreements subfolder forms of agreement designed to be used where the sub-contractor is to be a company.

A key consideration to bear in mind is the status of the sub-contractor and any workers engaged by the sub-contractor. Each of these forms aims to minimize the risk that HMRC will regard the individual sub-contractor as an employee of the contractor rather than a self-employed sole trader.

In each case, the information page accompanying each form explains that use of that (or any other) form cannot actually remove that risk. Therefore professional advice should be sought. The advice will need to consider the content of the form to be used together with all of the circumstances and arrangements relating to the work, the individual subcontractor, any person engaged by the subcontractor, and the contractor.

A further key consideration is that the agreement between the contractor and their own client must permit sub-contracting.

These Sole trader Sub-Contractor Agreements are part of the Business Documents Folder. Just £35.00 + VAT will provide you with 1 year's unlimited access to download all/any documents from the Business Folder.