ABSTRACT
Virtually every main contractor is also a sub-contractor under the Tax Deduction Scheme. Anyone employed in the construction industry is subject to either the Tax Deduction Scheme or PAYE, one or the other. This includes “Labour-only sub-contractors”, “Supply-and-fix sub-contractors” and any builder who supplies labour only, or labour and materials, to another builder. A builder is a “Main contactor”, but he becomes a sub-contractor when working for another main contractor. On such occasions he must present his Tax Certificate to that other main contractor. Therefore a main contractor must present his Tax Certificate to the following who are main contractors within the Tax Deduction Scheme:
Local Authority Department of Government Quasi-Government organisation such as the Nationalised Industries Housing Association Commercial or industrial organisation which carriers out building work in excess of £250,000 per annum.
