Individuals who carry on business as subcontractors, and
especially labour only subcontractors, can present problems
peculiar to this line of activity.
The first question you should consider is whether Schedule D
is the correct Schedule of charge. There may be advantages to the
taxpayer in being charged under Schedule D and self- employment may
be claimed in circumstances where, on the facts, the subcontractor
is employed and a charge as employment income arises.
You should first refer to
BIM66205 which deals with establishing
the correct Schedule of charge.
If, in the circumstances, Schedule D is the correct Schedule
of charge then
BIM66210 onwards deals with the question
of expenses which you can allow in computing chargeable profits.
You should deal with any expenditure not specifically
referred to on normal lines.
