Before a contractor can make a payment to a subcontractor for construction work, they may need to verify with HMRC that the subcontractor is registered.
See CIS 340 section 1.8, 3.2-3.15.
There are two ways to handle the subcontractor verification process in Coins ERP+:
Offline verification.
Electronic verification.
You can only pay a subcontractor who has been verified with HMRC (unless they are outside the scope of the scheme or covered by the transitional rules). A subcontractor who has been verified will be either:
unmatched - in which case you must pay them at the higher rate of deduction (30%); or.
matched - in which case their tax treatment (as advised by HMRC) tells you whether to pay them gross or at the lower rate of deduction (20%).