CIS Deduction Calculator
Work out how much a contractor takes off your invoice under the Construction Industry Scheme, and how much you will actually be paid. Free, no signup, and nothing leaves your device.
Share this calculation
Send these figures to anyone. The link opens this calculator with your numbers filled in. Nothing is uploaded anywhere.
Scan this to open it on a phone.
Make a professional quote for your next job →
How the CIS deduction is worked out
- Start with the total amount on your invoice.
- Take away the VAT, and the cost of anything you paid for yourself: materials, plant hire, consumable stores, fuel (except for travel) and manufacturing or prefabricating materials.
- Apply your CIS rate to what is left. That is the deduction.
- The contractor pays you the invoice total minus the deduction.
If you can't show receipts for materials, the contractor can estimate their cost.
CIS deduction rates
| Rate | Who it applies to |
|---|---|
| 20% | Subcontractors registered with HMRC for CIS |
| 30% | Subcontractors who are not registered |
| 0% | Subcontractors with gross payment status |
HMRC tells the contractor which rate to use when they verify you.
Worked example
You invoice £600 in total. £40 of that is VAT and you paid £200 for materials. The CIS rate applies to £600 − £40 − £200 = £360. At 20% the deduction is £72, so you are paid £528.
Frequently asked questions
Does the CIS deduction apply to VAT or materials?
No. VAT and materials you paid for directly are taken off before the rate is applied, so the deduction only applies to your labour and similar costs.
Can I get CIS deductions back?
The deductions count as advance payments towards your tax and National Insurance bill. They are taken into account when you complete your Self Assessment tax return. See GOV.UK: Get paid as a CIS subcontractor.
Do I charge VAT on a CIS invoice?
It depends. If you are VAT registered, your customer is VAT registered and reports your payment under CIS, and the work is standard or reduced rated, the domestic reverse charge usually applies. In that case your invoice does not charge VAT. It does not apply to jobs for householders who are not VAT registered. Read the GOV.UK guidance and ask your accountant if you are unsure. If the reverse charge applies, enter 0 for VAT above.
Is this CIS calculator accurate?
It follows the steps on GOV.UK to the penny. Your contractor's own calculation, and what HMRC records, are what count, so check your payment and deduction statement against it.