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A subcontractor is a person, team, or business that is slated to do a certain part of all of anothers project or contract. Often, a subcontractor has a certain field of expertise or task that they specialize in and which is what they are hired for.
Typically, contractors are paid more because theyre responsible for their own work and coordinating their subcontractors.
Legally, both general contractors and subcontractors are considered independent contractors, as a client hires both on a per-job basis. The difference is that a general contractor is usually hired by a property owner or manager, while another contractor hires a subcontractor.
When you pay subcontractors, youll usually need to make deductions from their payments and pay the money to HMRC . Deductions count as advance payments towards the subcontractors tax and National Insurance bill. Youll need to file monthly returns and keep full CIS records - you may get a penalty if you do not. What you must do as a Construction Industry Scheme (CIS) contractor .gov.uk what-you-must-do-as-a-cis-contrac .gov.uk what-you-must-do-as-a-cis-contrac
The general rule is that an individual is an independent contractor if the person for whom the services are performed has the right to control or direct only the result of the work and not what will be done and how it will be done. If you are an independent contractor, then you are self-employed.
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A subcontractor is a worker who is not your employee. You give a Form 1099 to a subcontractor showing the amounts you paid him. The subcontractor is responsible for keeping his or her own records and paying his or her own income and self-employment taxes.
The contractor is responsible to the client for the building job including the part performed by the subcontractor. Subcontractors might work on task-based contracts with no fixed date, long-term arrangements which can be discontinued at any time, or fixed-term contracts. See subcontractors and CIS.
Subcontractors, on the other hand, are companies or people hired by the contractor to do specific tasks or services in their area of expertise. A general contractor may hire an electrician, plumber, and carpenter for a construction project.

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