Scope of Regulations


The regulations governing deductions from payments to subcontractors in the construction industry are contained in:-


    • primary legislation, FA 2004, s. 57–77 and Sch. 11–12;


    • the Income Tax (Construction Industry Scheme) Regulations 2005;


    • the Income Tax (Construction Industry Scheme) (Amendment) Regulations 2007;







These regulations, which govern the collection and recovery of amounts deducted and various administrative matters, provide for:-


    • the requirement that the contractor verifies the subcontractor’s registration status;


    • the records to be kept of individual payments made to subcontractors and of the amount deducted;


    • the requirement that the contractor provides the subcontractor with a statement of tax deducted;


    • the payment of amounts deducted to the collector of taxes;


    • the recovery of amounts deducted;


    • the determination of amounts payable by the contractor;


    • the monthly returns to be made by the contractor;


    • the inspection of the records of contractors and subcontractors;


    • the amounts deducted to be set off against the subcontractor’s liabilities; and


    • the procedures to be followed when payment is made to a subcontractor with or without deduction of tax.



Call Kinsella Tax Investigations NOW on 0800 471 4546


We're here to help you. Call 0800 471 4546 for free confidential help and advice 24/7
or fill in your details below.

Enter captcha below:

*Please do not use this form to report suspected tax fraud or evasion or to sell your own services.

Translate »