Crest
Isle of Man Government
Reiltys Ellan Vannin
Isle of Man Government Crest

Income Tax

Government Offices
Buck's Road, Douglas
Isle of Man IM1 3TX
Enquiries:
+44 (0) 1624 685400

Online Services - Register or Login for online tax services

Disclaimer

Call Monitoring Policy

Meaning of Contractor

What does the term contractor mean?

Any individual, partnership or company carrying on a business which includes construction operations; or any individual, partnership or company which, although not engaged in the construction industry, regularly incurs expenditure on construction operations in the course of a business.

A non-resident is included if that person is performing construction operations on the Isle of Man.

What are the main criteria for a business to be considered to have regularly incurred expenditure on construction operations?

A business is considered to have regularly incurred expenditure on construction operations if -

  • the average annual expenditure on construction operations over a three year period up to the end of the last period of account exceeds £50,000, or
  • where it has not been carrying on the business for a three year period, one third of the total expenditure on construction operations for the period since commencement exceeds £50,000.

Can a person be a contractor and a subcontractor?

Yes, it is possible for a person to be a subcontractor to a main contractor but in turn a contractor to another person engaged by them to act as a subcontractor.

Who does not qualify as a Contractor?

The following are not contractors:

  1. a private householder having work done on his own premises,
  2. a Government Department, Douglas Corporation and Town, Parish and Village Commissioners,
  3. a business which is not engaged in construction operations and whose average annual expenditure on construction work on its own premises is less than £50,000.