CISR13030 | The Scheme: subcontractors: definition of 'labour- only' subcontractor

The term ‘labour-only subcontractor’ includes arrangements where the subcontractor maybe required to supply their own tools. A subcontractor may also be required to supply materials connected with the contract, the cost of which will be deducted prior to the calculation of the deduction made from payments to those subcontractor without gross payment status.

You should refer to the section dealing with ‘Payments’ at CISR15000 onwards for more details on this area.