CIS tax deduction calculator
Work out the CIS deduction a contractor must withhold when paying a sub-contractor.
The calculator
What is the Construction Industry Scheme (CIS)?
Under CIS, contractors deduct money from a subcontractor’s payments and pass it to HMRC as an advance towards the subcontractor’s tax and National Insurance. This calculator works out the deduction on a payment, separating the labour element (which is subject to deduction) from materials (which are not).
Deduction rates depend on whether the subcontractor is verified, registered or unregistered with HMRC. Contractors must file monthly CIS returns; subcontractors can often reclaim over-deducted amounts.
Frequently asked
What rate is deducted under CIS?+
Registered subcontractors usually have a standard deduction; unverified or unregistered subcontractors have a higher rate; some qualify for gross payment (no deduction). The calculator lets you choose.
Do I deduct CIS from materials?+
No — CIS deductions apply only to the labour element and certain costs, not to genuine materials. The calculator separates the two.