The Scheme: subcontractors: deductions from payments
Deductions from payments: Meaning of ‘deduction’
The term ‘deduction’ refers to the amount that a contractor has to withhold from apayment (exclusive of VAT) for labour made to a subcontractor.
Deductions from payments: Materials
Where the subcontractor is required to supply their own materials, the deduction doesnot apply to that part of the payment which the payer is satisfied relates to the cost ofthe materials (exclusive of VAT) to the subcontractor.
For more details refer to CISR15000 onwards which dealsspecifically with ‘payments’ falling within the scope of the Scheme.