Free tool
Work out the Construction Industry Scheme deduction on a subcontractor's payment — 20% if registered, 30% if not, 0% with gross payment status — and the net amount you pay. Instant, in your browser, no signup.
CIS is deducted from the labour element only — materials, VAT, plant hire and other qualifying costs are not subject to deduction. Enter amounts excluding VAT.
Enter the labour charge (and any materials) and pick the subcontractor's status to see the CIS deduction and net payment.
Under the Construction Industry Scheme (CIS), a contractor deducts money from a subcontractor's payment and passes it to HMRC as an advance toward the subcontractor's tax and National Insurance. The deduction applies to the labour element only.
The calculation is:
Materials, VAT, plant hire, fuel for plant and certain other direct costs are not subject to deduction, so enter your labour and materials separately and use VAT-exclusive figures. The result is an estimate to help you invoice and pay correctly — it is not tax advice.
Need a compliant CIS invoice that shows the deduction and net total? Read our guide to CIS invoices in the UK →
Under the Construction Industry Scheme the contractor deducts a percentage from the labour element of a subcontractor's payment and pays it to HMRC. The rate is 20% for registered (verified) subcontractors, 30% for those not registered, and 0% for subcontractors with gross payment status. Materials, VAT and other qualifying costs are excluded, so the deduction is only on the labour charge.
It is 20% if the subcontractor is registered with HMRC under the CIS and has been verified by the contractor. If they are not registered, the contractor must deduct 30%. Subcontractors who hold gross payment status are paid in full with no deduction (0%).
No. CIS deductions apply only to the labour part of the invoice. The cost of materials supplied by the subcontractor, plus VAT, plant hire, fuel for plant and certain other direct costs, are not subject to the deduction. That is why this calculator asks for labour and materials separately.
No. The CIS deduction is worked out on the VAT-exclusive labour amount, never on the VAT itself. Where the domestic reverse charge applies, the VAT is handled separately by the contractor. Enter your figures excluding VAT for the deduction to be correct.
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