Work out tds on contractor payment instantly with clear inputs, formula shown and shareable results.
Payments to contractors attract deduction at a low rate that differs by the payee's legal form, once a single payment or the annual aggregate crosses the threshold. The deducted amount is a credit for the contractor, not an extra cost.
Contractor TDS
TDS = payment × (1% individual / 2% company) once the threshold is crossed
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
Yes. Both a single-payment and an annual-aggregate threshold apply, and crossing either triggers deduction.
Deduction is generally on the gross invoice unless material value is separately identified in the contract.