CIS deduction and take-home calculator
Enter what you're charging for labour and materials. The calculator shows the CIS deduction your contractor should take, the VAT if you charge it, and the amount that should land in your bank account. It runs in your browser and nothing is saved.
How the CIS deduction is worked out
Under the Construction Industry Scheme, a contractor deducts a percentage from what they pay a subcontractor and sends it to HMRC. The deduction is taken from the labour part of the payment only. It is not taken from VAT, and it is not taken from the direct cost of materials you paid for and are charging on to the contractor.
- 20% if you're registered for CIS as a subcontractor.
- 30% if you're not registered (or HMRC can't match your details).
- 0% if you have gross payment status, so you're paid in full and handle your own tax.
The calculator does it in pence: labour × the rate, rounded to the nearest penny. Your contractor's own figure should agree. If it doesn't, ask for their payment and deduction statement.
Worked examples
| Labour | Materials | CIS rate | VAT | CIS deducted | You receive |
|---|---|---|---|---|---|
| £1,000 | £0 | 20% | None | £200.00 | £800.00 |
| £1,000 | £300 | 20% | None | £200.00 | £1,100.00 |
| £1,000 | £0 | 30% | None | £300.00 | £700.00 |
| £1,000 | £0 | 0% | None | £0.00 | £1,000.00 |
| £1,000 | £300 | 20% | 20%, charged | £200.00 | £1,360.00 |
In the last row the invoice total is £1,560 (£1,300 plus £260 VAT) and £200 of CIS comes off it, leaving £1,360. If the domestic reverse charge applied instead, no VAT would be added and you'd receive £1,100.
The deduction isn't an extra tax
CIS deductions count as advance payments towards your Income Tax and National Insurance. When you do your Self Assessment, they're set against what you owe, and if you've paid too much you can claim a refund. Keep your payment and deduction statements. Our guide on claiming back CIS deductions explains how.
What counts as materials?
Only the direct cost of materials you've paid for yourself can be left out of the deduction, and you should be able to show receipts. Your labour, your profit on the job and things like your own tools don't qualify. See what counts as materials under CIS.
Putting it on an invoice
Show labour, materials, VAT (if any) and the CIS deduction as separate lines so your contractor's accounts team can match them. Our free CIS invoice template is laid out that way, and this guide lists what to include.
Frequently asked questions
How much CIS will be deducted from my invoice?
The deduction is your labour charge multiplied by 20% if you're registered for CIS, 30% if you're not, or nothing if you have gross payment status. VAT and the cost of materials you paid for are left out of the calculation.
Is VAT included when CIS is deducted?
No. CIS is taken from the labour element only, excluding VAT. If you charge VAT, your contractor pays it to you in full, unless the VAT domestic reverse charge applies.
Are materials deducted under CIS?
The direct cost of materials you paid for and are charging on is not subject to the deduction. You should keep receipts, and you can't treat your own labour, profit or general overheads as materials.
What is the difference between 20%, 30% and 0% CIS?
20% is the standard rate for subcontractors registered for CIS. 30% applies if you're not registered. 0% means you have gross payment status and are paid without any deduction.
Can I get my CIS deductions back?
CIS deductions are advance payments towards your tax and National Insurance. You claim them through your Self Assessment tax return, and HMRC refunds anything you've overpaid. Keep your payment and deduction statements.
Is this calculator tax advice?
No. It applies the standard CIS rules to the numbers you enter and is guidance only. Check GOV.UK or speak to an accountant for your own circumstances.
Sources
- Construction Industry Scheme (CIS) – GOV.UK
- What you must do as a CIS subcontractor – GOV.UK
- What you must do as a CIS subcontractor: pay tax and claim back deductions – GOV.UK
- VAT domestic reverse charge for building and construction services – GOV.UK
This guide is general information, not legal, tax or financial advice. Rules and rates change, so check the linked GOV.UK pages for the current position.