Is this calculator updated for the 2026/27 tax year?

Yes, all calculators are fully updated with the latest HMRC thresholds, personal allowances, and National Insurance rates for 2026/27.

Can I use this for official tax submissions?

These tools are for estimation and illustrative purposes only. For official tax returns, please consult a qualified accountant or reference HMRC directly.

CIS Tax Deduction Calculator UK (2026/27): 20%, 30% & Net Pay

Construction Industry Scheme (CIS) Calculator

✓ Verified for 2026/27

Invoice Details

Gross Invoice Amount

Materials Cost (VAT excl.)

Subcontractor Registration Status

CIS Tax Deducted

£1,600

at 20% rate

Net Net Paid to You

£8,400

total invoice payout

Taxable Labor Cost

£8,000

invoice minus materials

Materials Reimbursed

£2,000

paid in full

CIS Invoice Breakdown

Materials Reimbursement £2,000

Net Labor Paid £6,400

CIS Tax Withheld £1,600

Net Invoice Payout £8,400

Materials 20%

Net Paid 64%

Tax 16%

ℹ️ Under the Construction Industry Scheme (CIS), contractors deduct money from a subcontractor's payments and pass it to HMRC. Deductions apply only to the labor portion of the invoice, not to materials, vat, or equipment hire costs.

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Verified for Accuracy (2026/27 Tax Year)

Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.

How We Calculated This

Input variables: Enter the relevant amounts, rates, or percentages in the form.
Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
Display outputs: The visual graphs, donut charts, and tables are compiled dynamically to show your net take-home and deductions.

Real-World Examples

Standard Scenario

A basic calculation applying standard UK tax bands and allowances.

Calculation runs based on standard HMRC rules.

With Pension or Deductions

Factoring in a percentage of salary sacrifice or pension contributions.

Deductions are calculated and adjusted accordingly.

Related Calculators

Frequently Asked Questions

What is the Construction Industry Scheme (CIS) and how does it work?

The Construction Industry Scheme (CIS) is an HMRC scheme where contractors deduct money from a subcontractor’s payments and pass it directly to HMRC. These deductions count as advance payments towards the subcontractor’s tax and National Insurance liabilities. CIS applies to most construction work done in the UK, including site preparation, alterations, repairs, and demolition.

What are the different CIS tax deduction rates?

The deduction rates depend on the subcontractor’s registration status with HMRC: 20% for registered subcontractors (standard deduction); 30% for unregistered subcontractors (higher deduction); and 0% (gross payment status) if the subcontractor meets HMRC’s compliance and turnover tests, meaning they receive full payment and pay tax later.

How do subcontractors claim back CIS tax deductions?

Sole traders claim back deductions by filing an annual Self Assessment tax return, where they offset the CIS deductions made against their final income tax and NI bill. Limited company subcontractors claim back deductions monthly via their employer EPS (Employer Payment Summary) submissions to offset their PAYE/NI liabilities, or claim a refund at the end of the tax year.