Subcontractor Payment & Compliance

Kanopi Outsourcing Solutions can provide up to date support for your organisation including:

  • Payments to sole traders and limited companies
  • Compliance assistance with employment and tax status law
  • Access to retained legal advice and assistance on the above
  • Provision of and assistance with contracts for Services
  • Self-Bill Invoicing
  • Issues with subcontractors
  • Issues with HMRC

Payment to sole traders and limited company subcontractors

We are able to set up and register new subcontractors.

If the work is in the Construction Industry then we fully appreciate the requirements laid down by the Construction Industry Scheme (CIS) and we are able to verify and authorise as required.

If the subcontractor is a limited company we are able to provide a full check of a limited entity to ensure it exists, is current, is what it says it is and is up to date with all its liabilities.

If the subcontractor is VAT registered we can check that its VAT number is correct and up to date. HMRC are clear that if you pay VAT to an incorrect, fraudulent, expired or non-existent VAT number then this amount will be disallowed from any return so it is the payer who is out of pocket. It is worth noting that in the budget new rules were announced for the construction industry that will reverse the liability on VAT so the payer is liable for any lost VAT due to fraud or malpractice. (Expected to be introduced October 2019).

You get one single invoice from us as appose to having to obtain and administrate an individual invoice from each subcontractor for each and every payment.

You make one single payment to us leaving the administrative responsibility for payment to all your subcontractors to us.

We provide and have access to assistance on all potential legal and compliance issues. So employment law, tax status law and IR35 regulation. Specifically, on IR35, this is an area that is changing in April 2020 meaning that you are responsible for the correct tax position of any limited company subcontractors. That is already the case for subcontractors working with public sector organisations so we are already fully up to speed with this.

For the benefit of your subcontractors we offer;

Self-bill invoicing We issue their invoice and provide it to them on payment fully receipted so they simply need to keep it and pass it to their accountant at the appropriate time.


Access to insurance and top-up insurance. Whilst subcontractors normally carry standard levels of Public Liability if you need them to have a higher level of cover or specific extra insurance then that can be difficult and expensive for the subcontractor. We can assist with access to insurance pools we have available for self-employed and limited contractors.


Assistance with issues This simply comes down to the fact that as a business we have worked in this marketplace for many years. There is very little that we haven’t come across and on the odd occasion where we might not be able to deal with any query you may have over a subcontractor, or any general query they may have we’ll always know where to get the answer.

By switching to Kanopi Outsourcing Services you will be relieved of all your payroll headaches