I have a regular author that writes articles for me. We are about to go over the threshold where I am required to report subcontractor wages. My question is. Am I buying a product (the articles) or did I hire a subcontractor to perform writing tasks for me?
An interesting one Surely, it all depends on what your contract with them is? If they have an employment contract or a subcontracters contract with them, then obviously that indicates which type of tax you pay. However, by the nature of your question, I guess you do not have a contract with them, to that effect you have simply been purchasing a finished product from them and you should therefore be declaring that in your Capital Expenditure and they should be declaring the same in their own Gross Income figure.
She sends me articles, if I like the article I pay for it. If I don't like it I don't pay for it. I think you answered my question. I buy a finished product from her. I should not consider her a subcontractor.
That sounds right, especially as you often turn down her work. It's just like going into a shop to buy a book, you buy the ones you like and not the others. You are simply buying a product and I bet she is not solely working for you so she is not a subcontractor and you only need to worry about what you are paying her and she will look after her own tax