CIS Calculator

Simplify your Construction Industry Scheme (CIS) payments with our free UK calculator. Instantly calculate the tax to deduct from a subcontractor's payment or determine the gross amount needed to achieve a specific net payment. Designed for contractors and subcontractors to handle 20%, 30%, and 0% rates accurately.

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Calculator

Calculation Mode
£
£
CIS is deducted from the payment amount before VAT is added. This tool calculates the final invoice total including VAT.
CIS Rate
The rate depends on the subcontractor's registration status with HMRC.

CIS Calculation Results

CIS Deduction

£200.00

Net Payment (after CIS)

£800.00

Total Invoice (inc. VAT)

£1,200.00

Input Summary

  • Mode: Calculate Deduction from Gross
  • Amount: £1,000.00
  • CIS Rate: 20%
  • VAT: Included

Calculation Method

CIS Deduction = Gross Payment × Rate

Net Payment = Gross Payment - CIS Deduction

%

How it works

The CIS requires contractors to deduct money from a subcontractor's payments and pay it directly to HMRC. Our calculator automates this. For deductions, it calculates the amount to withhold. For 'grossing up', it reverses the calculation to find the total invoice value required for the subcontractor to receive a specific net amount.

Inputs explained

  • Calculation Mode: Choose whether you're starting with a gross amount and finding the deduction, or starting with a net amount and finding the required gross.
  • Gross/Net Amount: Enter the payment value in pounds sterling.
  • VAT Treatment: CIS is calculated on the net payment before VAT is added. Check this box if the invoice includes VAT, and the calculator will handle the total correctly.
  • CIS Rate: Select the appropriate rate. 20% is standard for registered subcontractors, 30% for those not registered, and 0% for those with gross payment status.

Example

A contractor needs to pay a registered subcontractor £1,000 for labour (excluding VAT). Selecting 'Calculate Deduction from Gross', entering £1000, and using the 20% rate, the calculator shows a £200 CIS deduction and a net payment of £800 to the subcontractor. If VAT is added, the final invoice total would be £1,200.

Tips & notes

  • Always verify a subcontractor's CIS verification status with HMRC before applying a deduction.
  • This calculator uses the standard UK VAT rate of 20%, which can be changed in the advanced options.
  • CIS deductions count as advance payments towards the subcontractor's income tax and National Security contributions.

FAQs

The Construction Industry Scheme (CIS) is a UK tax system where contractors deduct money from payments to subcontractors and pay it directly to HMRC. It ensures tax is collected throughout the construction process rather than at the end of the tax year.

There are three CIS tax deduction rates: 20% for registered subcontractors who verify with HMRC, 30% for unregistered subcontractors, and 0% for those with gross payment status who have applied and been approved by HMRC.

CIS is calculated on the payment amount before VAT is added. If VAT is included in the invoice, it's added after the CIS deduction has been calculated. Our calculator handles this sequence automatically.

Grossing up means calculating the total payment amount needed to ensure the subcontractor receives a specific net amount after CIS deduction. For example, to ensure a subcontractor receives £800 after a 20% CIS deduction, you need to pay £1000 gross.

No, if a subcontractor has gross payment status verified with HMRC, you should deduct 0% CIS. This means they receive the full payment amount, and they're responsible for declaring their income and paying taxes directly.

Disclaimer

This tool provides estimates based on standard UK tax rules and is for informational purposes only. It is not a substitute for professional financial advice. For official guidance, please refer to the HMRC website or consult a qualified accountant.

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About This Tool

The CIS Calculator helps UK construction contractors and subcontractors determine tax deductions under the Construction Industry Scheme. Reviewed by Tax/Finance Advisor.