I have a main contractor who I'm planning to use to manage my build. He's suggested to me that is easier for him if I pay the guys that will work on the job directly rather than paying him and him passing it on. The reason given is that it takes him over the VAT threshold. Can anyone comment on this kind of set up? I don't think there's any specific reason why this might be a problem.
He would manage the guys on site on a day to day basis, though clearly I would be responsible for ensuring that they were paid correctly and the appropriate tax paid etc. And if I get it wrong, I'm on the hook.
Can anyone suggest whether this is ok and where I can get more information about my liabilities and responsibilities?