When you pay a subcontractor, you usually make some deductions from their payments.
HM Revenue and Customs (HMRC) will tell you how much to deduct from a subcontractor’s payments when you verify them.

The Construction Industry Scheme (CIS) deduction rates are:
• 20% for registered subcontractors
• 30% for unregistered subcontractors
• 0% if the subcontractor has ‘gross payment’ status – eg they don’t have deductions made

You must pay these deductions to HMRC, they count as advance payments towards the subcontractor’s tax and National Insurance bill.