CIS Deduction Calculator
Calculate Construction Industry Scheme deductions on subcontractor payments.
Not subject to CIS deduction
CIS Deduction
£1,000
Net Payment
£4,000
Deduction Rate
20%
| Status | Rate | Description |
|---|---|---|
| Registered | 20% | Standard rate for verified subcontractors |
| Unregistered | 30% | Higher rate for non-verified subcontractors |
| Gross Payment | 0% | No deductions for approved subcontractors |
Frequently Asked Questions
What is the Construction Industry Scheme (CIS)?
CIS is a scheme where contractors deduct money from subcontractors' payments and pass it to HMRC. These deductions count as advance payments towards the subcontractor's tax and NI. The scheme covers most construction work including site preparation, alterations, repairs, and demolition.
What are the CIS deduction rates?
Registered subcontractors have 20% deducted. Unregistered subcontractors have 30% deducted. Those with gross payment status have no deductions (0%). The deduction is only made on the labour element, not materials.
How do I get gross payment status?
To qualify for gross payment status, you must: have a UK bank account, be up to date with tax returns and payments, have a minimum annual turnover (£30,000 for individuals), and pass HMRC's compliance test showing you've paid your taxes on time.
Can I claim back CIS deductions?
Yes, CIS deductions are advance payments of your tax liability. When you file your Self Assessment tax return, the CIS deductions are offset against your tax bill. If you've had more deducted than you owe, you can claim a refund.