Free tool
CIS deduction calculator
Enter your labour and materials, pick your CIS rate, and see the deduction and the amount the contractor should actually pay you.
Invoice total
£1,000.00
Deducted from labour
− £160.00
Materials (never deducted)
£200.00
Contractor pays you
£840.00
Enter the labour and materials from your invoice. Exclude VAT — CIS is calculated on the net figures.
Put these figures on a proper CIS invoice — free, 10 invoices a month.
Create free accountHow the deduction is worked out
The contractor takes the CIS percentage off your labour only and pays it to HMRC on your behalf. It counts towards your tax bill — it isn't lost money, but it does hit your cash flow, so it belongs on the invoice in black and white.
- Labour £800.00 × 20% = £160.00 deducted
- Materials £200.00 — untouched
- Net payment to you = £840.00
Common questions
Is CIS deducted from materials?
No. CIS is deducted from the labour element only. Materials, plant hire you paid for and VAT are excluded from the deduction calculation.
When is the CIS rate 30% instead of 20%?
30% applies when the subcontractor is not registered with HMRC for CIS. Registered subcontractors are deducted at 20%, and those with gross payment status have nothing deducted.
Do I still add VAT on a CIS invoice?
If you are VAT registered, yes — but for most construction services between VAT-registered businesses the domestic reverse charge applies, meaning you state that the customer accounts for the VAT rather than charging it yourself.
General information only, not tax advice. Check current HMRC CIS guidance or ask your accountant about your own status.
Let Telaro do the CIS maths
Switch CIS on for a customer and every invoice shows the labour, materials, deduction and net payable in the right order.
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