The Construction Industry Scheme (CIS) was revised from 6 April 2007 (www.gov.uk/business-tax/construction-industry-scheme ).

On engaging a subcontractor, from 6 April 2007, the contractor no longer check the card or certificate, but contacts HMRC to verify whether payment should be made net, or gross.

The 2007 scheme has the following classifications:

(1)subcontractors who are registered under the scheme for gross payment by a main contractor; i.e. payment for labour with no deduction of tax;

(2)subcontractors who are registered under the scheme for net payment; i.e. payment for labour under deduction at the first rate of (say) 18%; or

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