Skip to main content
Yolist
Yolist

CIS Tax Calculator — Construction Industry Scheme 2024/25

Calculate CIS deductions for contractors and subcontractors. CIS applies to the labour portion of payments only — materials are always excluded. Deductions at 0% (Gross), 20% (Standard), or 30% (Higher/unregistered). Monthly CIS returns are due by the 19th of each month.

CIS Tax Calculator

Construction Industry Scheme — 2024/25. CIS deduction applies to labour element only.

Total payment you expect from the contractor (before CIS deduction)

CIS deduction only applies to the labour element. Enter cost of materials you are supplying (excl. VAT).

Estimated total annual earnings from construction work — used to estimate your Self Assessment tax position. Leave blank to project from this payment × 12.

Your expected marginal income tax rate for the year

5 CIS Planning Tips

  1. Apply for Gross Payment Status: If your annual construction turnover exceeds £30,000 (sole trader) or £100,000 (company), apply for GPS so contractors pay you in full. This eliminates cash-flow pressure from CIS deductions.
  2. Keep all material receipts: Materials are excluded from CIS calculations. Retaining receipts lets you accurately separate labour from materials — reducing the deduction and maximising your net payment.
  3. File monthly CIS returns even if nil: Contractors must submit a return by the 19th of each month even if no subcontractors were paid. Late nil returns attract automatic £100 penalties.
  4. Verify all subcontractors with HMRC first:Before making any payment, use the CIS Online service to verify subcontractors. Paying without verification means you may have to apply the 30% unregistered rate regardless of the subcontractor's actual status.
  5. CIS suffered is a tax credit — claim it:Subcontractors declare CIS deductions on their Self Assessment return. HMRC offsets this against the tax and NI bill — often resulting in a refund. Don't forget to include it or you'll overpay.

How CIS Works

Under CIS, contractors must verify subcontractors with HMRC before making any payment. Based on the verification result, they deduct 0%, 20%, or 30% from the labour element of the payment. Material costs claimed by the subcontractor are excluded from the deduction. The withheld amount is paid to HMRC monthly and credited against the subcontractor's Self Assessment tax bill.

CIS Deduction Rates

  • 0% (Gross Payment Status): Subcontractor receives full payment — no deduction
  • 20% (Standard): Registered subcontractor — deduction from labour element
  • 30% (Higher): Unregistered or high-risk subcontractor

Monthly CIS Return Deadlines

  • 19th of the month: Paper return filing deadline
  • 22nd of the month: Payment deadline (electronic)