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Are you suggesting using "contractors" instead of "subcontractors"?
I got the impression that contractor / subcontractor is defined by the underlying substance of the relationship rather than a label: so if i get a sparky to install some downlights for a property that I am flipping (so property development activity making me a contractor?), then they will be a subcontractor irrespective of the label that we give it. Is this incorrect? Also, one of the comments in Stuarts posts above seems to suggest that it is not a simple case of using "contractors": "Appointing a contractor whilst you still qualify as a contractor will not avoid CIS admin (although you may not have to make any deductions)."
Apologies for being such a noob. In the past when i have done work to my own house or BTL properties, Ive just gone to the trades and asked them to do whatever was necessary. There was no discussion of whether they were contractors or sub contractors. I never came across CIS until a couple of days ago.
sorry for flippant comment, but what I was getting at is try to do more yourself. installing downlight for instance aint too hard. or directly employ (although that could have its own probs).
Thanks, Joe, and dont worry about the flippant comment - it was quite amusing!
i dont mind getting my hands dirty and I thought a flip might give me the opportunity to do more of this. However, I do know some of my limits. one is plastering: i have tried my hand at it a couple of times and failed miserably, so paying a good plasterer £100-£200 for 1/2 - 1 day to skim a room is preferable to me struggling for a couple of days! Another is electrics where there's a lot of regulation which I am not totally familiar with: some work in kitchens and bathrooms need pre-notification to building control etc, so here again it is easier to pay a good sparky to get the job done properly. Going round viewing properties to potentially add to the BTL portfolio, ive seen lots of shoddy work, and i was hoping that i wouldnt make the same mistakes with my "development" Maybe over the long run, i would pick up a lot more of these after seeing them done a couple of times and becoming more familiar with the requirements, but for the first couple i would stick with what i know and use the trades if and as necessary.
only new circuits in kitchen and bathrooms need certification.
agreed lots of bad work out there and IMO most of it by so called pros.
Much like yourself, I was put off by the extra responsibilities of becoming a developer and the implications of getting it wrong.
Oversimplifying, whether you're an investor or developer is a matter of intention. If you're buying to rent you're an investor, if you're buying to sell you're a developer. Of course, it's not always that clear cut. What if you buy with the intention of letting but get an offer for sale that is too good to refuse? What if you buy to sell but can't achieve the desired price and rent for a short period?
Of course, tax advice is required as the tax treatment of investors and developers is different and may influence your intention.
A couple of links to hopefully explain:
The links were very useful. They've also raised the issue of NI, which I hadn't considered. All in all, given that i wasn't thinking of going in to developing in a big way (just a small flip), I think the requirements / regulations etc are just a bit too onerous for me and I will probably just stick to the day job and mowing the lawn!