🇬🇧 United Kingdom

CIS Tax Calculator

Calculate your CIS deductions, annual tax summary, and potential refund for 2025/26. See how much CIS is deducted per payment, your full-year tax position, and whether you can reclaim overpaid tax through self-assessment.

£
Total payment before CIS deduction
Your registration status with HMRC for CIS
£
Cost of materials (excluded from CIS deduction)
No
Toggle if you are VAT-registered

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How to Use This Calculator

CIS Deduction tab

Enter the gross payment amount, your CIS registration status (20% registered, 30% unregistered, or 0% gross payment status), and the materials cost included in the payment. The calculator works out the labour portion (gross minus materials), applies the correct CIS deduction rate, and shows the net payment you receive plus the effective rate after materials. Expand "More options" to add VAT details if you are VAT-registered.

Annual Summary tab

Enter your total gross income for the year, total CIS deducted, total materials, and allowable expenses. The calculator computes your gross profit, taxable profit, income tax, Class 2 NI, and Class 4 NI, then offsets your CIS deductions to show whether you are owed a refund or have a balance to pay. Use "More options" to add VAT details or other income sources.

Reclaim Check tab

Enter your total CIS deducted and your actual tax + NI liability (you can calculate this using the Annual Summary tab). The calculator shows your potential refund amount, how to claim it through self-assessment, and the deadline date.

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The Formula

CIS deductions are calculated on the labour element of each payment only:

Labour = Gross Payment − Materials Cost

CIS Deduction = Labour × CIS Rate

CIS Rates:
• 20% — registered subcontractor
• 30% — unregistered subcontractor
• 0% — gross payment status

Net Payment = Gross Payment − CIS Deduction

Annual Tax Position:
• Gross Profit = Gross Income − Materials
• Taxable Profit = Gross Profit − Allowable Expenses
• Total Liability = Income Tax + Class 2 NI + Class 4 NI
• Balance Due = Total Liability − CIS Deductions Paid
• If negative = Refund due to you via Self Assessment

CIS deductions are not an extra tax. They are advance payments of your income tax and NI. If your CIS deductions exceed your actual tax liability, you receive the difference as a refund through your Self Assessment return.

Materials must be the actual cost of materials used for the job. The contractor verifies the materials figure before excluding it from the CIS deduction calculation. Labour-only subcontractors have no materials deduction.

Example

Dave — Self-employed Bricklayer, Manchester

Dave is a CIS-registered subcontractor. He receives a gross payment of £5,000 for a job, of which £1,500 is materials. His annual gross income is £60,000 with £15,000 materials and £5,000 expenses.

Single Payment (CIS Deduction)

Gross payment£5,000
Materials£1,500
Labour portion£3,500
CIS at 20%£700
Net payment received£4,300
Effective rate14.0%

Annual Summary

Gross income£60,000
Materials£15,000
Gross profit£45,000
Expenses£5,000
Taxable profit£40,000
Income tax (20% on £27,430)£5,486
Class 4 NI (6% on £27,430)£1,646
Class 2 NI (£3.45 × 52)£179
Total tax & NI£7,311
CIS already paid£8,000
Refund due£689

Reclaim Check

CIS paid£8,000
Actual liability£7,311
Refund amount£689
Claim viaSelf Assessment
Deadline31 January 2027

Dave has overpaid by £689. He reclaims this through his Self Assessment return filed by 31 January 2027. This is common for CIS subcontractors whose deductions exceed their actual tax liability.

FAQ

The Construction Industry Scheme (CIS) is an HMRC scheme that requires contractors in the construction industry to deduct money from subcontractors' payments and pass it to HMRC. These deductions count as advance payments of the subcontractor's tax and National Insurance. Contractors must register for CIS, verify subcontractors, file monthly returns, and make deductions at the correct rate. The three deduction rates are 20% (registered), 30% (unregistered), and 0% (gross payment status). CIS applies only to the labour portion of payments; materials are excluded. Source: HMRC CIS guidance.
You can register for CIS online through your HMRC Government Gateway account or by calling the CIS helpline on 0300 200 3210. You will need your National Insurance number and Unique Taxpayer Reference (UTR). Registration is free and reduces your deduction rate from 30% to 20%. To apply for gross payment status (0% deduction), you need a good compliance record, tax returns filed on time, tax paid on time, and minimum annual turnover of £30,000 (excluding materials and VAT). Source: GOV.UK CIS registration.
Yes. If your CIS deductions exceed your actual income tax and National Insurance liability for the year, you can claim the difference as a refund through your Self Assessment tax return. Most CIS subcontractors are entitled to a refund because CIS deductions are often higher than the actual tax owed. You must file your Self Assessment return by 31 January following the end of the tax year (31 January 2027 for 2025/26). HMRC typically processes refunds within 4-12 weeks. You can also claim allowable business expenses to reduce your taxable profit and increase your refund. Source: HMRC CIS refund guidance.
Materials are the direct cost of construction materials that the subcontractor has purchased for the specific job. This includes bricks, timber, plasterboard, plumbing fittings, electrical supplies, and similar items. It does not include equipment hire, scaffolding rental, fuel, or consumables like sandpaper and drill bits. The contractor must verify the materials figure before excluding it from the CIS calculation. Keep all receipts as HMRC may ask for evidence. Source: HMRC CIS guidance on materials.
Gross payment status means contractors pay you the full amount with no CIS deductions. To qualify, you must meet three tests: a turnover test (minimum £30,000 annual turnover excluding materials and VAT), a compliance test (all tax returns filed and tax paid on time for the previous 12 months), and a business test (you carry out construction work in the UK or provide labour for it). HMRC reviews your status annually. If you fail to maintain compliance, your gross status can be withdrawn. Source: GOV.UK gross payment status.

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