To add a new subcontractor to the BrightPay software, select CIS > Subcontractors followed by "Add New Subcontractor".
Complete the Registered Details for a subcontractor as follows:
Enter the subcontractor's trading name
Select the business type applicable to the subcontractor, i.e. Sole Trader, Company, Partnership or Trust
Unique Tax Reference (UTR)
Enter the subcontractors 10 digit UTR number as issued by HMRC
OTHER INFORMATION REQUIRED FOR VERIFICATION
The required information for a sole trader successful verification is:
- First Name
- Middle Name
- NINO (if known)
The required information for a partnership successful verification is:
- Individual Partner Name
- Partners own UTR (NOT Partnership) or NINO
The required information for a company successful verification is:
- Company Name, if different from trading name
- Company Unique Taxpayer Reference
- Company Registration Number
Indicate if the subcontractor is registered for VAT and include the VAT number where applicable
The subcontractor can be verified online by selecting "verify online"
Choosing to "verify online" will prompt BrightPay to create a Subcontractor Verification Request including any subcontractors you wish to verify. This Verification Request can be sent directly to HMRC, BrightPay can subsequently update the subcontractors with the response from HMRC.
Alternatively verification details can be added manually
If you are not verifying the subcontractor online you must select the appropriate tax payment status for the subcontractor.
Tax Payment Status
Subcontractors are all paid in line with one of three tax status:
Gross - Paid without deduction
Net of Standard Deduction - Deduct tax at 20%
Net of Higher Deduction - Deduct tax at 30%
THE SUBCONTRACTOR'S REGISTERED DETAILS ARE NOW COMPLETE. SELECT THE ‘ADDITIONAL DETAILS’ TAB TO CONTINUE TO SET UP THE SUBCONTRACTOR'S RECORD.
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