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Subcontractors

Meaning of Subcontractor

  1. The term subcontractor includes the self-employed individual working on his own or in partnership or a company, whether resident or non-resident in the Isle of Man for income tax purposes.
  2. That person is a subcontractor if, under the contract, he is under a duty to the contractor:
    1. to carry out the construction operations, or
    2. in the carrying out of the operations -
      1. to furnish his own labour, or
      2. to furnish the labour of others, or
      3. to arrange for the labour of others to be furnished.

    For a company, the furnishing of labour refers to the labour of employees or officers of the company.

  3. A further category of subcontractor is the person who is answerable to the contractor for the carrying out of the operations by others.
  4. The term includes a labour agency or staff bureau which contracts either to get work done with its own workmen, or to supply the services of workmen to a contractor.
  5. The term also includes a gang-leader who in turn will be acting as a contractor in relation to the payments made by him to the members of his gang.
  6. A non-resident person who undertakes construction operations in the Isle of Man and who is a subcontractor is liable to the deduction of income tax.
  7. Employees of the individual or company who receive remuneration subject to deduction of income tax as employees under the Income Tax (Instalment Payments) Act 1974 are not subcontractors for the purposes of this Scheme.
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