Schedular payments are payments made to contractors who perform certain activities. Tax is deducted from these payments but they’re different to salary or wage payments.
The contractor's payer deducts tax from each payment before paying them.
If you receive schedular payments you need to either:
- work out your tax rate and give it to your payer
- apply for a tax rate exemption and show your certificate of exemption to the person who pays you.
If you pay schedular payments you need to collect and keep all documents from the people you pay.