Contractors
In general terms, a contractor is any individual, partnership or company carrying on a business which includes construction operations; or any individual, partnership or company which, although not engaged in the construction industry, regularly incurs expenditure on construction operations in the course of a business.
Relevant forms for contractors
If you are a contractor, there are several forms which are relevant to you.
| Form Number | Form Name | Description |
|---|---|---|
| C11 | Certificate of Tax Deducted in Respect of Subcontractor Work | Completed by the contractor and given to the subcontractor with each payment |
| C11a | Subcontractors Payments and Tax Deducted | A record of the payments made on form C11 for each subcontractor, divided into monthly payment periods. |
| C14 | Subcontractors Deduction Card | A two-part form completed annually by the contractor for each subcontractor |
| C20 | Subcontractor Commencing | To be completed and submitted to the Income Tax Division as soon as any subcontractor is engaged during the year. |
| C21 | Certificate of Payments and Tax Deducted for Part Year | To be submitted only when requested by the Income Tax Division. Details payments made and tax deducted for a subcontractor to a specific date during the year. |
| C31 | Stationery Request | Stationery request form. |
| C35 | Remittance Card for Deductions from Subcontractors | A remittance card showing the total monthly tax deductions extracted from forms C11a. |
| C37 | Contractors Annual Return | The Contractors annual return form detailing form C14 totals for all subcontractors engaged during the year. |
| C49 | List of Forms C14 | Listing of linked subcontractors. |
The Contractors System
For any contractors making payments to subcontractors, the following procedures should be followed:
Periodical payments
- When a payment is made, the contractor should complete form C11 and issue it to the subcontractor. If the subcontractor holds a valid exemption certificate the code to be used on the C11 is NT (No Tax), otherwise it will be HR (Higher Rate).
- Enter the details of the C11 on the relevant subcontractors C11a.
Monthly payments
- At the end of each payment period, total the tax deducted for each week on form C11a.
- Calculate the total amount of tax deducted on all forms C11a, and enter this figure on to the relevant payment period on the C35.
- Submit the C35 to the Income Tax Division along with the payment by the 19th of each month- even if no tax has been deducted this should still be done. The C35 will be returned to the contractor with a reply paid envelope in due course.
- Alternatively, the total tax deducted can be submitted and paid online using Online Tax Services. Nil remittances can also be made online. To use this service you must first register and enrol for online services.
Annual payments
- Prior to 5 April you should request the required number of C14 forms from the Income Tax Division for the subcontractors engaged during the year. A stationery request form is available, form C31.
- Add the totals on each C11a and transfer the details to the C14.
- Issue the top copy to the subcontractor.
- Complete form C37, entering the details of the total number of C14 forms, labour, materials and tax deducted.
- Ensure that the amount of tax paid to the Income Tax Division on the C35 agrees with the total tax deducted figure on the C37.
- Submit the C37 to the Income Tax Division by the 5 May each year. This must be accompanied by the bottom copy of form C14 and the bottom copy of form C11a for all subcontractors.
Online Tax Services
