Maybe this is an obvious question, but I am confused . . . . If a building contractor who usually applies a 20% deduction to all its workers pays a subcontractor through a payroll services company, does it still have to deduct 20% from the payment to that services company?
Thanks
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Yes
As Shirley says they will only be paid the full amount if they have gross CIS status.
Of course if they aren't registered as a subcontractor under CIS you will probably have to deduct 30% - you'll know when you try and verify them with HMRC.