Skip to content

Cookies on Accounter

With your permission, Google Analytics measures visits to our public pages and Meta measures visits for our advertising. Essential storage always stays on. Change your mind any time with “Cookie settings” in the footer. Cookie policy

Accounter

CIS deduction calculator

Work out the Construction Industry Scheme deduction on a payment: 20% if you are registered, 30% if not, 0% with gross payment status. It applies to labour only, never to VAT or materials.

  • Free, no sign-up for the result
  • Sources on GOV.UK

Rates last checked 13 October 2026 against GOV.UK

A 20% CIS deduction on £1,000.00 of labour is £200.00, so you are paid £1,000.00.

The only part the deduction applies to.

Materials, consumable stores and plant hire are not deducted from.

Added to the payment after the deduction.

Year to date so far (optional)

Result

Labour
£1,000.00
CIS deduction (20%)
£200.00
Labour after deduction
£800.00
Materials
£200.00
VAT
£0.00
Net payment
£1,000.00

Rates for the 2026/27 tax year from GOV.UK. Check HMRC guidance for your circumstances.

How the CIS deduction works

  • 20% is taken if the subcontractor is registered with CIS and verified by HMRC.
  • 30% is taken if the subcontractor is not registered.
  • Nothing is taken with gross payment status.
  • The deduction is on labour only. It is not taken from VAT, materials, consumable stores or plant hire.

Subcontractors can use the year-to-date boxes to keep a running total of labour and deductions, then check it against the payments on their statements with the bank statement converter. This is a guide: the deduction on the contractor's CIS statement is the figure that counts.

Sources: GOV.UK: What you must do as a CIS subcontractor (get paid), GOV.UK: What you must do as a CIS contractor. Last checked 13 October 2026.