The UK Contractor's Cheat Sheet 2026/27
The numbers day-rate contractors and tradespeople need most, on 2 pages: CIS, overtime, tax dates, mileage, VAT and late payment. Free.
Free: The UK Contractor's Cheat Sheet 2026/27
CIS rates, overtime maths, tax dates, mileage, VAT and late payment, on 2 pages. Keep it on your phone or print it for the van.
Just want to read it? The whole cheat sheet is below. Open the PDF (2 pages, A4).
1. CIS: the three rates
| 20% | You're registered for CIS and the contractor can verify you. |
| 30% | You're not registered, or the contractor can't verify you. |
| 0% | You have gross payment status. You're paid in full and pay your own tax later. |
CIS comes off labour, not materials. The contractor takes the deduction from your labour only. VAT, materials you paid for, plant hired for the job and consumables are left out. Keep your receipts, because the contractor can ask for them.
Labour £1,000 + materials £300 = invoice £1,300
CIS: 20% of £1,000 labour = £200
You're paid £1,300 − £200 = £1,100
The £200 counts towards your tax bill. You claim it on your Self Assessment return.
2. Overtime on a day rate
Hourly rate = day rate ÷ 8 hours. Then multiply for overtime. Example: £165 a day.
| Rate | Sum | Per hour |
|---|---|---|
| Normal | £165 ÷ 8 | £20.63 |
| Time and a quarter (×1.25) | £20.625 × 1.25 | £25.78 |
| Time and a half (×1.5) | £20.625 × 1.5 | £30.94 |
5 days × £165 = £825.00
2 hours overtime at ×1.25 = £51.56
Saturday, 4 hours at ×1.25 = £103.13
Total £979.69 (before any CIS or VAT)
There's no legal overtime rate. ×1.25 and ×1.5 are common, so check what your contract or agency says.
3. Tax year and Self Assessment dates
The UK tax year runs from 6 April to 5 April. This one is 6 April 2026 to 5 April 2027.
| 5 October | Tell HMRC (register for Self Assessment) if you're new or didn't need to file last year. |
| 31 October | Paper tax return deadline (31 October 2026 for 2025/26). |
| 31 January | Online tax return deadline and pay what you owe, plus your first payment on account (31 January 2027 for 2025/26). |
| 31 July | Second payment on account, if you make them. |
4. Mileage (simplified expenses)
| 55p | a mile for the first 10,000 business miles in a car or van (2026/27 tax year; it was 45p before 6 April 2026). |
| 25p | a mile after 10,000 miles. |
Motorbikes are 24p a mile. You can't also claim fuel, insurance or repairs for that vehicle.
5. VAT threshold
You must register for VAT if your taxable turnover for the last 12 months goes over £90,000, or you expect it to in the next 30 days. You can register earlier if you want to.
6. Late payment (business clients)
If a business pays you late you can charge 8% a year plus the Bank of England base rate. The base rate is 3.75% (since 18 December 2025), so that's 11.75% a year. This doesn't apply if your contract sets a different rate.
You can also add a one-off fixed sum for each late invoice:
| Amount owed | You can add |
|---|---|
| Up to £999.99 | £40 |
| £1,000 to £9,999.99 | £70 |
| £10,000 or more | £100 |
Sources
- GOV.UK: What you must do as a CIS subcontractor
- GOV.UK: Self Assessment deadlines
- GOV.UK: Simplified expenses, vehicles
- GOV.UK: When to register for VAT
- GOV.UK: Late commercial payments and Bank of England Bank Rate
Want more on CIS? See the one-page CIS cheat sheet, the CIS calculator and the overtime calculator.
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