Work out the Construction Industry Scheme deduction a contractor must withhold from a subcontractor's payment, based on their verified CIS status: gross, net (20%) or unverified (30%).
Données vérifiées · July 2026
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Under CIS, contractors deduct tax at source from payments to subcontractors before passing on the net amount. Deductions apply only to the labour element — materials the subcontractor genuinely incurred are excluded. The deduction rate depends on HMRC's verification: 0% for subcontractors registered for gross payment, 20% for those registered net, and 30% for anyone HMRC cannot verify.
£5,000 gross payment with £1,000 materials, subcontractor verified net-standard: £4,000 labour element, 20% deduction = £800, leaving £4,200 net payment.
Enter the gross payment due to the subcontractor for the work.
Enter the materials cost included in that payment — CIS only applies to labour.
Select the subcontractor's verified CIS status: gross, net-standard or unverified.
Read the labour element, deduction rate and net payment due.
Last data update
July 7, 2026
Sources and references
HMRC — Construction Industry Scheme (CIS): guide for contractors and subcontractors (gov.uk/what-you-must-do-as-a-cis-contractor), 2025/26.
The data in this calculator is updated regularly to reflect the latest official rates. When in doubt, consult the official sources listed above.
Yes, provided the subcontractor's invoice separately identifies a genuine materials cost — the deduction only ever applies to the labour element.
Yes — deductions are treated as payments on account of the subcontractor's income tax and Class 4 NIC (or offset against a limited company's PAYE bill), reconciled via Self Assessment or the employer's PAYE return.