346. Payments to sub-contractors.

To prevent the evasion of tax and social security contributions in the construction industry consequent on the use of self-employed labour, statutory provisions1 exist, the general effect of which is that, where a contractor2 makes a payment to a sub-contractor3 under a construction contract4 the contractor must deduct and pay to the Commissioners for Her Majesty's Revenue and Customs a percentage of the payment on account of tax5. If, however, the sub-contractor is registered with the Commissioners for gross payment, the payment may be made without deduction6. The Commissioners for Her Majesty's Revenue and Customs may by regulations make