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HMRC internal manual

Construction Industry Scheme Reform Manual

The Scheme: subcontractors: gangs

The contractor, having applied the Scheme to payments made to the gang-leader (or gangmaster), need not be concerned with the transactions between the gang-leader and the other members of the gang. Any deductions from payments to the members of the gang become the responsibility of the gang-leader.

If the contractor makes a separate agreement with any other member of the gang, then that member will be a subcontractor or employee of the contractor. A contractor who pays each member of the gang separately must treat each as a separate subcontractor, or employee, and apply the deduction scheme or PAYE as appropriate in each case. Where there is any doubt as to the correct treatment, the contractor should be advised to consult the CIS Helpline for advice.