When completing the monthly return, the contractor must present the gross payment to the subcontractor or, if applicable, the amount before deduction of £200. It is a good practice for a contractor to give a withdrawal of payment to a subcontractor when the payment has been made in gross, but there is no obligation to do so. “The Construction Industry Scheme treats you as a subcontractor if you work for a contractor, for example as a freelance craftsman or as a small construction company with its own employees. The industry`s construction system does not apply to employees employed directly by the contractor. You can be both a contractor and a subcontractor under the Construction Industry Scheme, for example. B if your company works for a large contractor and subcontracts are also awarded to independent craftsmen. “Below is an example of a calculation in which materials and labor are delivered (“delivery and repair”) and the contractor has paid the subcontractor`s fees. The subcontractor needs this reference number later when claiming a credit for one of the deductions made. Businesses that, as subcontractors, have deductions from their income should deduct these deductions from amounts paid monthly or quarterly for PAYE, their employees` social security contributions and student loan repayments, and their subcontractors` CIS deductions. This should be done monthly (or quarterly, as required) and the calculation should be indicated in the company`s PES. We give the contractor the individual verification reference V04528765 for the 4 subcontractors that we were able to verify. We give the subcontractor the same verification number that could not be verified, but we add a letter at the end so that the number V0004528765/A is.
Subcontractors can ask to be paid gross – without deductions from their payments. To do this, subcontractors must prove to us that they meet certain qualification conditions. Under the scheme, in certain situations, a contractor must make a deduction when making a payment to a subcontractor under a contract covering construction work. . . .