CISR13070 - The Scheme: subcontractors: deductions from payments

Deductions from payments: Meaning of ‘deduction’

The term ‘deduction’ refers to the amount that a contractor has to withhold from a payment (exclusive of VAT) for labour made to a subcontractor.

Deductions from payments: Materials

Where the subcontractor is required to supply their own materials, the deduction does not apply to that part of the payment which the payer is satisfied relates to the cost of the materials (exclusive of VAT) to the subcontractor.

For more details refer to CISR15000 onwards which deals specifically with ‘payments’ falling within the scope of the Scheme.