Subcontracting or Direct Work: Which Fits?
Subcontracting is useful for a base of booked days; direct work gives you control of the customer and price. A larger direct invoice does not always pay better for the time used.
An illustrative day comparison
| Subcontract day | Direct customer job | |
|---|---|---|
| Revenue | £220 | £360 |
| Direct travel/material costs | £20 | £120 |
| Left before overhead and tax | £200 | £240 |
| If it uses one day | £200 per day | £240 per day |
| If the direct job needs another half-day | Still £200 for the subcontract day | £160 per day across 1.5 days |
These are assumed figures, not market rates. The extra visit changes the result even though the direct invoice is bigger.
Which fits your situation?
- You need predictable booked days: a reliable contractor can provide a base without you winning every customer yourself.
- You want your own customer base: direct work gives more pricing and scheduling control, with quoting and collection to handle too.
- You want both: reserve contractor days, then offer customers only the remaining real availability.
Settle the responsibility before starting
Agree who supplies materials, approves extras and handles defects, plus payment timing. The label “subcontractor” does not settle employment status or CIS treatment. The CIS guide shows how a deduction affects the bank payment.
Updated 29 October 2026 · Report a factual error