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CIS deduction calculator

Enter your labour and materials, your CIS rate and your VAT position. You see what the contractor deducts and the net amount they pay you.

CIS deduction
VAT

What you’ll be paid

£1,640.00

Labour
£1,800.00
Materials
£200.00
VAT under the reverse charge (customer pays HMRC)
£400.00
Invoice total
£2,000.00
Less CIS at 20% on labour
−£360.00
Net amount payable
£1,640.00
Make this CIS invoice

What CIS is deducted from

Under the Construction Industry Scheme the contractor deducts tax from what they pay you and passes it to HMRC. The deduction is 20% if you are registered for CIS, 30% if you are not, and 0% if you have gross payment status.

It applies to your labour only. VAT, materials you paid for, plant hire and consumables are left out, so show labour and materials separately on your invoice.

CIS and the reverse charge

When you and the contractor are both VAT and CIS registered and they are not the end user, the domestic reverse charge usually applies: your invoice shows the VAT but doesn’t charge it, and the contractor pays it to HMRC. The CIS deduction is still worked out on the labour.

Example: £1,800 labour and £200 materials at 20% under the reverse charge. The invoice total is £2,000 (VAT of £400 shown, not charged), CIS at 20% on labour is £360, and the contractor pays you £1,640.

Last updated 2026-10-01. This calculator is a guide, not tax advice.

Frequently asked questions

Is CIS deducted from VAT?

No. CIS is never deducted from VAT or from materials you supplied, only from the labour part of your invoice.

How do I get the CIS back?

The deductions count towards your tax and National Insurance. Sole traders claim them in their Self Assessment return; limited companies reclaim them through their payroll (Employer Payment Summary). Keep the contractor’s monthly payment and deduction statements.

How is the deduction rounded?

This calculator and our invoices round the deduction down to the penny, so it is never more than the rate allows. Check the contractor’s statement for the figure they paid to HMRC.