FREE TOOL
CIS deduction calculator.
Subcontracting under the Construction Industry Scheme? Split labour from materials and see the deduction, the VAT treatment and the money that actually reaches your account.
The light grey figures are a generic example — just start typing to use your own.
YOUR PAYMENT
The contractor pays the deduction of £240.00 to HMRC on your behalf. It counts towards your tax bill — keep every deduction statement.
How CIS deductions work on a subcontract invoice
Under the Construction Industry Scheme the contractor takes a deduction from the labour part of your invoice and pays it to HMRC on your behalf. Materials, plant hire and consumables are always left out of the deduction, so splitting them out properly on the invoice protects your cash flow.
Registered subcontractors have 20% deducted, unregistered or unverified 30%, and gross payment status nothing at all. This calculator is a guide, not tax advice.
Common questions from trades
What counts as materials rather than labour for CIS?
Anything you actually bought for the job — pipe, cable, boards, fixings — plus plant hire, fuel for that plant and consumables. Keep the receipts: the contractor can only exclude materials they can see evidence for.
Why am I being deducted 30% instead of 20%?
30% is the rate for subcontractors who aren't registered with HMRC for CIS, or whose details the contractor couldn't verify. Register, or check your name, UTR and National Insurance number match exactly what HMRC holds, and it drops to 20%.
What is gross payment status?
If HMRC grants it, contractors pay you in full with no deduction and you settle your tax through self assessment or corporation tax. You need a clean compliance record and enough turnover to qualify.
How does the VAT domestic reverse charge fit with CIS?
On most CIS work between VAT-registered businesses you don't charge VAT — the customer accounts for it. Your invoice shows the net amount, states that the reverse charge applies, and shows the VAT they must account for.
Do I get the deducted money back?
Yes — it counts towards your tax bill, and if too much has been taken you get a refund. That only works if you keep every monthly deduction statement from every contractor.
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CIS handled on every invoice, automatically.
Paid30 works out the deduction for you, keeps materials out of it, and builds the monthly statement your contractor and accountant need — while your customer pays on the spot.
- No monthly fee
- No card machine needed
- Keep 100% of your rate
- CIS & VAT handled
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