All contractors working within the construction industry, assuming their work is subject to the regulations are obliged by law to pay their sub-contractors through the Construction Industry Scheme. This applies to you no matter what your status – you can be a sub-contract company, partnership or sole-trader – the rules apply to all.  If you have not, as a sub-contractor applied for, and been granted Gross Payment Status then your contractor will deduct the standard rate of 20% from you, or if you are not known to HMRC the deduction rate is 30%.