CISR15120 - The Scheme: payments: contractor deductions (for example, administration, PLI)

On occasions, contractors may make deductions from payments due to subcontractors in respect of:

  • public liability insurance
  • CITB Levy (see CISR15110)
  • administrative charges.

Since CIS is tax machinery applied to payments made rather than payments due under a contract, CIS only applies to the payment actually made, net of these deductions. Payments in respect of those deductions should therefore be ignored when determining the 鈥榞ross payment鈥� to be included in the monthly return.