Sole Trader working with another Sole Trader

Majikstar

Hi everyone,

I'm a sole trader, garden maintenance. This financial year I needed an extra pair of hands so reached out to another another sole trader gardener to assist in a number of my  clients gardens. He's been helping me out sporadically through this season up until today. I've been invoicing the clients directly for the work we do together and for when he works alone. He then invoices me directly for his time and I pay him adding his invoices to my expenses for tax relief. My question is whether this is legal and the correct way to go about this arrangement. I'd like to maintain a single point of contact between myself and the end clients if I can, hence why I've proceeded this way.

Hope you can help.

DullGreyGuy

Its certainly legal/allowable but ultimately you run a (small) risk that if the work becomes more frequent etc that either he or HMRC decide that he isn't a sole trader but an employee/worker for you and as such certain taxes or rights are due. Look at Uber that said all their drivers were Sole Traders but the Supreme Court ruled they were Workers and so entitled to unpaid holiday, sick, national minimum wage etc. 

The other thing to consider is if you need Employers Liability insurance as despite its name it also considers sub-contractors especially if he is labour only (ie using your tools and/or you provide materials)