How do I notify the Division of my intention to become a contractor?
A contractor who engages one or more subcontractors must notify the Income Tax Division of their intention to become a contractor within 14 days of making their first payment to a subcontractor. This notification is required in all cases, irrespective of the number of subcontractors or the amount paid, and should be made using form R13 Contractor’s Notification Form.
The Division will require details of the names and addresses of both the contractor and the business or, if the contractor is a Limited Company, the registered office address together with details of the directors. The contractor will also need to supply the date they engaged or intend to engage their first subcontractor(s) and the approximate number, if they are not already engaged.
If subcontractors are already engaged, the contractor must, at the same time, supply the full name, address and date of birth of each subcontractor, the subcontractor’s tax reference number and the date of their engagement using form C20 Subcontractor Commencing.
Once these have been received by the Division, an information pack including all the necessary documentation will be issued.
Failure to notify the Division within the specified period will result in a penalty of £250.