General information only, not advice for your circumstances. Please talk to us before acting.
Contractors
If you pay subcontractors for construction work, you must register as a contractor, verify each subcontractor with HMRC, deduct tax from the labour element of their payments and file a monthly return by the 19th.
Deduction rates
- 20% for registered subcontractors
- 30% for unregistered subcontractors
- Nil for subcontractors with gross payment status
Subcontractors
Deductions count as advance payments towards your tax and National Insurance. Keep your payment and deduction statements: we use them to claim the credit in your return or your company’s payroll.
