Free tool
CIS deduction calculator
Under the Construction Industry Scheme, contractors deduct money from a subcontractor's labour and pay it to HMRC. This works out the deduction and what you actually get paid.
Enter the job
The deduction is taken from labour only. Materials and VAT are never subject to CIS. Figures here are net of VAT.
Result
- Labour
- £0.00
- Materials
- £0.00
- Gross total
- £0.00
- CIS deduction (20%)
- − £0.00
- Net paid to you
- £0.00
The £0.00 deduction is paid by the contractor to HMRC on your behalf and counts towards your tax bill.
How CIS deductions work
A contractor must deduct a percentage from the labour part of a subcontractor's payment and pass it to HMRC as an advance towards the subcontractor's tax and National Insurance. The standard deduction is 20% for subcontractors registered under the scheme and 30% for those who are not registered or cannot be verified. Subcontractors with gross payment status have 0% deducted and settle their tax separately.
The deduction applies to labour only. The cost of materials, plant hire and VAT is excluded, so splitting labour and materials correctly on your invoice matters. These rules are set out in HMRC's CIS guidance (CIS 340).
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