Can I claim the cost of paying a labourer or subcontractor?

Can I claim the cost of paying a labourer or subcontractor? Yes. In 2026-27, money you pay a labourer or subcontractor to work for your business is an allowable expense. If your business and the work are construction, you are also a CIS contractor and usually deduct tax first. In our reading, the amount before the deduction. GOV.UK says the deduction is paid to HMRC as an advance towards the subcontractor's own tax and National Insurance, so the full invoice is your cost even though part of it goes to HMRC. Payments to subcontractors for construction work go in box 18, construction industry, of the full self-employment pages. Box 19 covers wages, salaries and other staff costs, including subcontract labour not included elsewhere. In our reading, yes, if you can show the payment was for the business. HMRC's CIS guide lists cash as a payment under the scheme, so the same deductions, statements and records apply, and contractors must keep records for at least 3 years after the tax year. Read the full answer, with every source, at rightotax.co.uk.