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HMRC internal manual

Construction Industry Scheme Reform Manual

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


CISR15600 Action guide contents


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 ‘gross payment’ to be included in the monthly return.