CIS deduction calculator
Working under the Construction Industry Scheme, part of your payment is held back and sent to HMRC before it reaches you. This works out exactly how much — on your labour only, never materials — so you know what will actually land in the bank. Split it right on the invoice and you never lose more than you should. Nothing you type is saved.
The deduction isn't a cost — it's tax paid early on your behalf. It counts toward your Self Assessment bill, and if you've overpaid, you get it back.
Lands in your bank
£2,100.00
- Labour
- £2,000.00
- Materials
- £500.00
- Invoice total
- £2,500.00
- CIS deducted at 20%
- − £400.00
The contractor pays you £2,100.00 and sends £400.00 to HMRC toward your tax. Keep the deduction statement they give you — it's your proof.
Show CIS on every invoice for freeThis is a general guide, not tax, legal or financial advice. Rates checked July 2026. CIS is a UK scheme and its rates are set by HMRC. Always confirm the current rates and rules with HMRC or your accountant before relying on a figure.
Common questions
- How is a CIS deduction calculated?
- The contractor takes the deduction off your labour charge only — never the materials, and never the VAT. If you're registered and verified with HMRC the rate is 20%; if you're not registered it's 30%. So on £2,000 of labour, a registered subcontractor has £400 held back and gets the rest, plus materials and VAT in full.
- Is CIS deducted from materials?
- No. The deduction is only on the labour part of your invoice. That's why it matters to split labour and materials on the invoice itself — if it's one lump sum, the contractor may apply CIS to the whole amount and hold back more than they should.
- What are the CIS deduction rates?
- 20% if you're registered under the Construction Industry Scheme and HMRC verifies you, 30% if you're not registered, and 0% if you hold gross payment status, where you're paid in full and settle the tax yourself. Registering is what moves you from 30% to 20%.
- Do I get the CIS deduction back?
- It isn't lost — it's tax paid in advance. The contractor sends it to HMRC and gives you a deduction statement. At the end of the year it's set against your Self Assessment bill, and if you've overpaid, HMRC refunds the difference. Keep every statement as your proof.