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HMRC internal manual

Construction Industry Scheme Reform Manual

From
HM Revenue & Customs
Updated
, see all updates

The Scheme: primary legislation: section 58

This section provides a definition of a subcontractor.

A person is a subcontractor if, under the terms of a contract for construction operations,they

  • are under a duty to carry out construction operations, that is, are under a contractual obligation to execute operations specified in the contract (for example, a construction concern commissioned to erect a building): FA04/S58 (a)
  • furnish their own labour for carrying out construction operations (for example, a labour- only subcontractor): FA04/S58 (a)
  • if a company, furnish the labour of the employees or officers of the company for carrying out construction operations (for example, a company supplying the personal services of its principals or employees): FA04/S58 (a)
  • furnish the labour of other parties for carrying out construction operations (for example, a gang-leader or labour agency): FA04/S58 (a)
  • are answerable to the contractor for the carrying out of construction operations by others (for example, developers and site managers): FA04/S58 (b)