CIS deduction calculator
Put in the labour, and the materials if there are any. Pick the subcontractor's CIS status. You'll see what comes off and what gets paid.
What gets paid
- Labour
- £1,000.00
- CIS deduction (20% of labour)
- −£200.00
- Labour after deduction
- £800.00
- Materials (no deduction)
- £200.00
- Paid to the subcontractor
- £1,000.00
The contractor pays the deduction to HMRC on the subcontractor's behalf. Any VAT is on top, and isn't part of the deduction.
How the deduction works
- 20% if the subcontractor is registered for CIS.
- 30% if they're not registered, or the contractor can't verify them.
- 0% if they have gross payment status.
The deduction comes off the labour only. Materials aren't subject to the CIS deduction, and neither is VAT. HMRC also leaves out things like plant hire and consumables. Materials only come out of the sum if the subcontractor paid for them, and the contractor can ask for receipts.
Source: GOV.UK, What you must do as a CIS contractor: make deductions and pay subcontractors. For the subcontractor's side, see What you must do as a CIS subcontractor.
This calculator is a guide. It doesn't file anything with HMRC.
If you're not sure which rate applies, or what counts as materials on a job, check with HMRC or your accountant.
Keeping the records behind it
Banksman doesn't do your CIS returns. It helps you keep records of the work behind them: daywork hours and price work logged per site or plot, approved by the manager, grouped by week ending and exported as a CSV for whoever does your books.
CIS worker invoices Coming soon: Invoices for CIS workers built from their approved timesheets.
Working out what to charge? Try the day rate calculator.
Keep reading.
- Site management · 2 min readDaywork vs Price Work: How to Log Hours Without an ArgumentThe difference between daywork and price work, and how to record each one properly so nobody argues about hours at the end of the week.Read the guide →
- Choosing software · 2 min readBanksman vs Fieldwire: Which Is Right for a 10-Person Building Firm?A balanced comparison of Banksman and Fieldwire for a small UK building firm, covering setup, features and the kind of team each one is built around.Read the guide →
- Site management · 2 min readWhat Is a Construction Site Diary App?A construction site diary app records daily site activity (tasks, hours, materials and photos) digitally instead of on paper. Here's how it works.Read the guide →
Banksman for your trade
Free tools and comparisons
Get the hours right first.
Banksman keeps your timesheets, approvals and site records in one app. Have a look round the live demo on realistic sample data. Four fields, no card.
Speak to Dom or Matt: real people, no call centres.
Dom: 07508 300353 · Matt: 07964 660071