Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractors payments, which is then passed onto HM Revenue and Customs (HMRC). The deductions count as advance payments towards the subcontractors tax and National Insurance.
There are as many as three rates for the subcontractors that come in the range of 0%-30% depending on the category to which the subcontractor belongs. While CIS aims at minimizing the tax evasion in construction industry the aim of the tax payer will always be reduction of tax amounts as much as permissible legally. Tax calculation and especially CIS tax assessment is a complex process and requires handling by experts, in order to ensure that you are not burdened with exceptionally heavy taxation.