CIS Tax Calculator 2026/27
Enter the invoice value and the materials within it to see the Construction Industry Scheme deduction and what the subcontractor is actually paid.
Deductions never apply to materials — only to labour.
Net payment to subcontractor
£2,560.00
£440.00 withheld and paid to HMRC
- Invoice total
- £3,000.00
- Less materials
- £800.00
- Labour element
- £2,200.00
- CIS deduction at 20%
- £440.00
- Net payment
- £2,560.00
Common questions
- Is CIS deducted from materials?
- No. Deductions apply to the labour element only. Materials, plant hire, fuel for plant, and manufacturing or prefabricating costs are all excluded, provided the subcontractor genuinely incurred them.
- What is the difference between 20% and 30%?
- Subcontractors registered with HMRC under CIS have 20% deducted. Those not registered have 30% deducted. Subcontractors with gross payment status have nothing deducted and settle their tax through self assessment or corporation tax.
- Does CIS apply to VAT?
- No. Calculate the deduction on the invoice value excluding VAT. Since the domestic reverse charge came in, most construction invoices between CIS-registered businesses carry no VAT anyway.
- How do I get the deduction back?
- Sole traders and partnerships claim it against their self assessment liability. Limited companies offset it against PAYE and NIC due each month through the Employer Payment Summary.
A guide based on HMRC CIS rules for 2026/27. It is not tax advice — check CIS340 or speak to an accountant for anything unusual.