Understanding the Payment Statement for Subcontractors

Each month, you must generate and send to your subcontractors statements about the payments that you made to them if you withheld tax amounts from payments made to them.

The statements must cover a period from the 6th day of one month through the 5th day of the following month and must include this information:

• Contractor's name.

• Employer's tax reference.

• Date of the tax month in which the payment is made.

  The end date of the tax month is the last day covered by the tax period. For example, the date of the tax month for the period of August 6th through September 5th, 2008, is September 5th, 2008.

• Subcontractor's name and UTR.

• Gross amount, excluding VAT.

• Amount of the deductions.

• Cost of materials that reduced the amount against which the deduction was applied.

• For unmatched subcontractors, the verification reference number.