Every now and then, you may find that you need additional skills to successfully fulfil the requirements of a project. This means you may need to bring in a third party to assist you.
However, in doing so, you open yourself up to some potential tax and legal pitfalls surrounding the status of the engaged party. You’ll need to know whether they’re an independent contractor or an employee - you can learn how to draw this distinction in our Knowledge article.
If you have determined your subcontractor is self-employed or a limited company, this cost is simply an expense and should be added to your Crunch account under the ‘Subcontractor costs’ expense type.
If they're an employee, no matter how much or how little they earn, they’ll need to be added to the monthly payroll to ensure the correct treatment for RTI is applied. Crunch can provide a payroll service. For more information don’t hesitate to ask your Client Manager.