Free calculator · 2026/27 rates
Work out the net payment after CIS deduction for any construction invoice. Enter labour and materials separately — the calculator applies CIS to labour only, exactly as HMRC requires.
Sole traders claim via Self Assessment. Limited companies claim via monthly EPS. Both are easy to get wrong — missing the box on SA means you overpay tax; doing it wrong on EPS holds up your refund. We handle this for trades across Redbridge, Waltham Forest and Epping.
Book a free 20-min callCIS (the Construction Industry Scheme) is HMRC's way of collecting tax at source from subcontractors in construction. A contractor pays a subcontractor; before handing over the money, the contractor deducts CIS at the appropriate rate from the labour portion and pays that directly to HMRC.
This is why itemising your invoice matters. An invoice that just says "Building work — £4,600" exposes the whole amount to CIS. The same invoice broken down as labour / materials / plant only exposes the labour line.
For deeper background see our CIS & construction industry guide, which covers verification, gross payment status, reverse-charge VAT and common mistakes.
20% if you're a registered subcontractor and the contractor has verified you with HMRC. 30% if you're unregistered or verification failed. 0% if you have gross payment status. The deduction applies only to labour, not to materials, plant or equipment hire.
No. CIS is deducted from labour only. Materials, equipment hire, plant and fuel are excluded. Always itemise your invoice with separate labour and materials lines to make this clear — contractors who deduct CIS on a non-itemised total are technically correct based on what's been invoiced.
Sole traders claim through Self Assessment as tax already paid. Limited companies claim monthly through Employer Payment Summary (EPS), offsetting CIS against PAYE/NIC. Surplus carries forward and can be reclaimed at year-end as a refund.
You need to pass three HMRC tests: turnover (£30k+ for a sole trader; £30k per director or £100k total for a company); business test (genuine UK construction business with a UK bank account); compliance test (clean filing record over the past 12 months). HMRC reviews annually and can withdraw the status if compliance slips.
It applies HMRC's exact CIS deduction logic. The calculation itself is correct. What it can't tell you is whether your invoice should use reverse-charge VAT, whether the contractor has actually verified you, or what your final tax position will be after all your other income and expenses. For a personal calculation, talk to an accountant.