Frequently Asked Questions > Construction Industry Scheme > How will I know whether to pay them gross or net of tax?

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HMRC will also tell you to pay a subcontractor gross if they're registered with them to get gross payments. If the subcontractor is not registered for gross payments, HMRC will tell you to make a deduction from their payment at the standard rate as long as they can verify them. If HMRC cannot match the details you gave for them, they will give you a special verification reference and tell you to make a deduction at the higher rate.

Last updated on May 6, 2011 by Robert Harris