The term 'deduction' refers to the amount that a contractor has to withhold from a payment (exclusive of VAT) for labour made to a subcontractor.
Where the subcontractor is required to supply their own
materials, the deduction does not apply to that part of the payment
which the payer is satisfied relates to the cost of the materials
(exclusive of VAT) to the subcontractor.
For more details refer to
CISR15000 onwards which deals
specifically with 'payments' falling within the scope of the
Scheme.
