LoadingLoadingLoadingLoadingEnter the labour amount, the materials, and the subcontractor's CIS status. We show the deduction, the net payment, and the totals — for both the contractor's and the subcontractor's side of the conversation.
Free to use · Runs entirely in your browser · No signup required
Standard 20% applies to most CIS-registered subcontractors. Unregistered subbies are 30%. Gross-payment status (verified with HMRC) is 0%.
Labour
£2,000.00
Materials
£500.00
CIS deduction
£400.00
20%
Net to subcontractor
£2,100.00
Total cost to contractor
£2,500.00
Indicative calculation only. Always verify subcontractor status with HMRC's CIS verification service before the first payment. Materials must be genuinely materials, not labour-disguised-as-materials.
CIS — the Construction Industry Scheme — is HMRC's way of collecting income tax up front from construction subcontractors. As a contractor, you withhold a percentage of the labour element of each payment and pay it directly to HMRC. The subcontractor reclaims it (or offsets it against their own tax bill) at year-end.
The percentage depends on the subcontractor's CIS status: 20% for registered subbies (the default), 30% for unregistered, 0% if they hold gross-payment status. Materials are not deducted from — only labour is. This calculator handles those mechanics, but the legal responsibility for verifying status and submitting CIS returns sits with the contractor.
Calculators and generators we built for UK service businesses. All free, all in-browser, no signup.
Book a 30-minute walkthrough — we'll show you how Cushty fits your business. No commitment, no contract until you choose to subscribe.
UK-hosted · GDPR compliant · Month to month · Cancel any time
