The Scheme: primary legislation: section 61
This section covers the deductions to be made from contract payments.
- after making allowances for the direct cost of materials, contractors must deduct the relevant percentage from all contract payments made: FA04/S61 (1)
- the ‘relevant percentage’ will be an amount to be determined by the Treasury: FA04/S61 (2)
- the limits governing the relevant percentage for registered and unregistered persons are the basic and higher rates of income tax respectively: FA04/S61 (3)