Home / CIS Deduction Calculator
Calculate how much tax will be deducted from your gross payment under the Construction Industry Scheme (CIS) for 2025/26.
Not sure? Most registered subcontractors are deducted at 20%.
The CIS deducted is paid on your behalf to HMRC. You can offset it against your Self Assessment tax bill.
The Construction Industry Scheme (CIS) requires contractors to deduct money from a subcontractor's payments and pass it to HMRC as advance payments towards the subcontractor's tax and National Insurance.
0% — Gross Payment Status
You receive the full gross payment. Reserved for subcontractors with a strong compliance record. You must apply to HMRC.
20% — Standard Rate
Applied to subcontractors who are registered with HMRC for CIS. This is the most common rate.
30% — Higher Rate
Applied when HMRC cannot verify a subcontractor — usually because they are not registered for CIS. Register to reduce your deduction rate.
Yes. CIS deductions are advance payments towards your tax bill. When you complete your Self Assessment tax return, the amount deducted under CIS is offset against your total tax liability. If more has been deducted than you owe, HMRC will refund the difference.
CIS applies to payments for labour within the construction industry. It does not apply to the cost of materials, which should be invoiced separately and are excluded from CIS deductions.
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