The contractor, having applied the Scheme to payments made to
the gang-leader (or gangmaster), need not be concerned with the
transactions between the gang-leader and the other members of the
gang. Any deductions from payments to the members of the gang
become the responsibility of the gang-leader.
If the contractor makes a separate agreement with any other
member of the gang, then that member will be a subcontractor or
employee of the contractor. A contractor who pays each member of
the gang separately must treat each as a separate subcontractor, or
employee, and apply the deduction scheme or PAYE as appropriate in
each case. Where there is any doubt as to the correct treatment,
the contractor should be advised to consult their Processing Office
for advice.
