CIS Calculator UK: 20% and 30% Deductions
Calculate Construction Industry Scheme deductions instantly. Enter labour, materials, VAT, and the correct 20% or 30% rate to see the net payment due.
CIS Deduction Calculator
Calculate Construction Industry Scheme deductions
Labour + Materials should equal Gross Amount. Materials are exempt from CIS deductions.
Quick Answer
CIS deductions are usually 20% for registered subcontractors and 30% for unregistered subcontractors.
The deduction applies to labour only. Materials and VAT are excluded, so a CIS invoice should split labour from materials clearly.
Understanding CIS Deductions
The Construction Industry Scheme (CIS)requires contractors to deduct money from subcontractor payments and pass it to HMRC. These deductions count as advance payments of the subcontractor's tax and National Insurance.
CIS Deduction Rates
Registered with HMRC approval
Standard deduction rate
Higher deduction rate
Labour vs Materials
CIS deductions are only applied to the labour portion of a payment. Materials, equipment hire, and VAT are excluded. This is why CIS invoices must clearly separate labour costs from materials.
How to Use This CIS Calculator
- Enter the labour amount before VAT.
- Enter materials separately so they are not deducted under CIS.
- Select 20% for registered subcontractors or 30% for unregistered subcontractors.
- Add VAT only if the invoice needs VAT shown separately.
- Use the net payment figure for the amount paid to the subcontractor.
Example Calculation
A subcontractor invoices £5,000 total: £3,500 for labour and £1,500 for materials. At the 20% rate:
- CIS Deduction: £3,500 × 20% = £700
- Net payment to subcontractor: £5,000 − £700 = £4,300
- Amount contractor pays HMRC: £700
CIS Invoicing Made Simple
Experi automatically calculates CIS deductions on your invoices, separates labour from materials, and generates compliant CIS payment statements.
Frequently Asked Questions
What is the CIS deduction rate?
CIS deductions are made at 20% for registered subcontractors or 30% for unregistered subcontractors. Subcontractors with gross payment status (0%) have no deductions taken. The deduction is applied to the labour element only - materials are exempt.
Are materials subject to CIS deductions?
No. CIS deductions only apply to the labour portion of a payment. Materials, equipment hire, and VAT are not subject to CIS deductions. This is why invoices under CIS must clearly separate labour from materials.
Who needs to operate CIS?
Contractors in the construction industry who pay subcontractors must register for CIS and make deductions from payments. This includes builders, property developers, and any business spending more than £3 million on construction in a 12-month period.
Can subcontractors reclaim CIS deductions?
Yes. CIS deductions are advance payments of the subcontractor's tax and National Insurance. Subcontractors can reclaim them through their Self Assessment tax return (if sole traders) or offset them against PAYE/NIC liabilities (if operating through a limited company).