Quick Answer
20% for subcontractors registered under CIS, 30% for unregistered ones, and nothing for those holding gross payment status. Deductions apply to the labour element only — materials, plant…
20% for subcontractors registered under CIS, 30% for unregistered ones, and nothing for those holding gross payment status. Deductions apply to the labour element only — materials, plant hire and VAT are excluded, provided the invoice separates them.
The money is not an extra tax. It is an advance payment against the subcontractor’s eventual Income Tax and National Insurance, and it is set against their bill at the end of the year.
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