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CIS Deductions Calculator 2026/27

Updated for the 2026/27tax year · Last updated

Enter the gross payment and materials cost to calculate the CIS deduction and net payment. Select 20% for registered subcontractors, 30% for unregistered, or 0% if you hold gross payment status.

Net payment

£8,000.00

CIS deduction

£2,000.00

Gross payment£10,000.00
Labour element£10,000.00
CIS deduction (20%)− £2,000.00
Net payment£8,000.00

CIS deductions are credited against your Self Assessment tax bill. Keep your CIS statements (HMRC form CIS132) as evidence.

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How this calculator works

CIS deductions apply only to the labour element of a payment — materials costs are excluded. The deduction is calculated as: (gross payment − materials) × deduction rate. The contractor sends this to HMRC; you receive the net amount.

At the end of the year, the total CIS deducted is credited against your Self Assessment tax liability. If deductions exceed your bill, you get a refund.

Frequently asked questions

CIS requires contractors to deduct money from a subcontractor's payment and pass it to HMRC. The deductions count as advance payments towards the subcontractor's income tax and NI. The scheme applies to construction work in the UK, including building, demolition, repairs, and civil engineering.
Registered subcontractors: 20% deduction on the labour element of payments. Unregistered subcontractors: 30% deduction. Subcontractors with gross payment status: 0% — they receive the full payment and settle their own tax. Materials costs are excluded from the CIS deduction calculation.
CIS deductions are credited against your Self Assessment tax bill. At the end of the tax year, HMRC offsets the deductions against your income tax and NI. If more was deducted than you owe, you'll receive a refund. Keep all CIS statements (HMRC form CIS132) as evidence.
You can apply through the Government Gateway if you pass three tests: you or your business must be based in the UK, do construction work, and have a turnover above the minimum threshold (£30,000/year for sole traders). HMRC also checks your compliance history.

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