• Home
• Accessibility
• Search
• News
• Contacts
• Privacy

The Contractor System

How does the scheme operate?

A form C20 must be submitted to the Income Tax Division immediately for any new subcontractor engaged during the year.

When a payment to a subcontractor is made, form C11 is completed and issued to the subcontractor. If the subcontractor holds a valid exemption certificate the code to be applied to the C11 is NT. The code to be used if the subcontractor does not hold a valid exemption certificate is HR. The details of the C11 are then entered on the relevant subcontractor's C11(a).

What do I have to do each month?

At the end of each monthly payment period, the tax deducted from each weekly payment to an individual subcontractor is totalled on form C11(a).

The amount of tax deducted on all forms C11(a) is totalled and the figure entered on to the relevant payment period on the C35 remittance card.

The C35 is submitted together with the payment of the total tax deducted to the Income Tax Division by the 19th of the following month. If no tax has been deducted the C35 must still be submitted reporting this fact. The C35 will be returned to the Contractor with a reply paid envelope in due course.

Alternatively this information can be submitted electronically using Online Tax Services. to register and enrol - click here.

What do I have to do annually?

Form C49 will be issued to each contractor showing details of all subcontractors linked for the tax year. This form should be updated and returned to the Income Tax Division to show any subcontractors who are no longer engaged and any subcontractors who were engaged but are not listed.

Prior to 5 April, the contractor should request the required number of forms C14 from the Income Tax Division for the subcontractors engaged during the year. A stationery request form (C31) is available here.

For each subcontractor, the total on each C11(a) is added together and the figure transferred to the C14. The top copy of the form C14 is issued to the subcontractor.

Form C37 is completed, entering the details of the total number of forms C14, labour, materials and tax deducted.

It must be checked that the amount of tax paid to the Income Tax Division on the C35 agrees with the total tax deducted figure on the C37.

The C37 is submitted to the Income Tax Division by 5 May each year. This must be accompanied by the bottom copy of form C14 and the bottom copy of form C11(a) for all subcontractors.

I keep my records on computer, what should I do?

Contractors who wish to maintain their records on computer should submit a copy printout of the equivalent of a C11(a), showing all subcontractors payments, including date, deductions (if applicable), exemption certificate numbers and C11 number, to the Income Tax Division for authorisation.

Supplemental

Where the Income Tax Division needs to establish the total tax deducted in respect of a specific Subcontractor prior to the end of a tax year, form C21 will be issued to the Contractor for completion and return.