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CISR16060 | The Scheme: primary legislation: section 61

From HM Revenue & Customs · Construction Industry Scheme Reform Manual

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)