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 and 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 payment
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.
CIS deduction rates
| Your status | Deduction |
|---|---|
| Registered with HMRC for CIS | 20% |
| Not registered | 30% |
| Gross payment status | 0% |
Register. The gap between 20% and 30% is pure cash flow out of your pocket for the whole year until you reclaim it. You get it back eventually; you don't get the year back.
Deductions come off labour only, so itemise your materials
Genuine materials costs are excluded from the CIS deduction. If your invoice says “Bathroom fit, £2,400” as one line, the contractor has nothing to exclude and 20% comes off the whole thing, including the £900 of tiles you already paid for.
Put materials on their own line on every invoice. It is the single most valuable habit on this page.
Gross payment status means the contractor pays you in full and you settle your own tax. You need turnover of £30,000+ and a clean compliance record.
Your rate is set by HMRC at verification, not chosen by the contractor. If a contractor is deducting 30% and you know you're registered, that's a verification problem to get fixed, not a rate to accept.
SoloDesks itemises labour and materials as separate lines on every quote and invoice, so the CIS deduction lands on the labour only. Start free.
Construction Industry Scheme rates as published on gov.uk. General guidance, not tax advice. Your own verification status is the thing that decides your rate, and only HMRC can tell you what it is.
Last checked: 30 July 2026
What lands in your bank, at both rates
Labour only. Materials and VAT are paid to you in full on top of every figure in this table, which is exactly why they belong on their own invoice lines.
| Labour on the invoice | Held back at 20% | You get (20%) | You get (30%) |
|---|---|---|---|
| £500 | £100 | £400 | £350 |
| £1,000 | £200 | £800 | £700 |
| £2,000 | £400 | £1,600 | £1,400 |
| £5,000 | £1,000 | £4,000 | £3,500 |
| £10,000 | £2,000 | £8,000 | £7,000 |
The last column is the cost of not registering. On £10,000 of labour it is £1,000 of your money sitting with HMRC for the rest of the tax year. You get it back at Self Assessment. You do not get the year back.
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%.
- How do I work out my CIS take-home pay?
- Take the labour figure on your invoice, remove the deduction at your rate, then add materials and VAT back in full. On an invoice of £2,000 labour plus £600 materials, a registered subcontractor has £400 held back and is paid £2,200. An unregistered one has £600 held back and is paid £2,000. The materials are untouched either way.
- What is the 30% CIS deduction?
- It is the rate a contractor must apply when HMRC cannot verify you, which in practice means you have not registered under the Construction Industry Scheme. It is 10 percentage points more than the registered rate, held back from every labour payment until you register and are verified. It is not a penalty and it is not lost, but it is a year of your cash sitting with HMRC for no reason.
- 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.
Next, in what you owe
Tax, VAT and CIS: the money that was never really yours to spend.
Tax set-aside calculator
How much of every payment is actually yours? Get a percentage to move to savings so the tax bill never ambushes you.
VAT calculator
Add VAT to a price or find the VAT hidden inside a total. Net, VAT and gross laid out clearly, at 20%, 5% or any rate.
Pricing the job
Work out what the job should cost before you write the number down.
Getting paid
Raise it, send it, and chase it when it goes quiet.
All nine are on the free tools page, and none of them need an account.