What is the Construction Industry Scheme?

The Construction Industry Scheme (CIS) sets out rules for payments made by contractors to subcontractors in the UK construction industry. Contractors may need to deduct money from subcontractor payments and pass these deductions to HMRC.

What does a Construction Industry Scheme Calculator calculate?

A Construction Industry Scheme Calculator can help estimate the CIS deduction from a subcontractor payment based on the relevant payment and deduction information entered into the calculator.

What CIS deduction rates are used?

The CIS deduction rate depends on the subcontractor's circumstances and HMRC registration status. Registered subcontractors may have deductions at the applicable CIS rate, while different rules can apply to subcontractors with gross payment status or those who are not registered.

Does CIS apply to all construction workers?

CIS generally applies to contractors and subcontractors carrying out construction work within the scope of the scheme. Whether CIS applies depends on the nature of the work, the parties involved and the relevant HMRC rules.

Can I use this calculator to work out my CIS deduction?

Yes. The calculator is designed to provide an estimate of the CIS deduction using the information entered. The result should be checked against the applicable HMRC rules and the contractor's actual CIS records.

Are materials included when calculating CIS deductions?

CIS deductions are generally calculated on the relevant amount of the payment after taking account of allowable deductions, including qualifying materials costs where the CIS rules permit them to be excluded.

What is the difference between CIS and PAYE?

CIS is a deduction scheme for certain payments made by contractors to subcontractors in the construction industry. PAYE is the system employers use to deduct Income Tax and National Insurance from employees' earnings.

Is the Construction Industry Scheme Calculator accurate?

The calculator provides an estimate based on the information entered and the assumptions built into the tool. CIS calculations can depend on individual circumstances, so the result should not be treated as professional tax advice.

Construction Industry Scheme Calculator UK

Want to calculate how much CIS tax to deduct from a subcontractor’s payment? Our Construction Industry Scheme Calculator helps contractors estimate CIS deductions and the amount to pay a subcontractor after the deduction.

Simply enter the payment details and relevant costs to get a quick estimate.

How Does the CIS Work?

Under the Construction Industry Scheme (CIS), contractors typically deduct money from payments made to subcontractors and pay the deductions to HMRC. The deduction is treated as an advance payment towards the subcontractor’s tax and National Insurance (NI) liabilities.

The standard CIS deduction is currently 20% for registered and verified subcontractors. A 30% deduction can apply where a subcontractor is not registered or cannot be verified. Subcontractors with gross payment status generally have no CIS deduction taken.

CIS Calculation Example

For example, if the amount subject to CIS deduction is £2,000 and the applicable deduction rate is 20%:

Amount subject to deduction: £2,000
CIS deduction: £400
Estimated payment to subcontractor: £1,600

The actual calculation may differ where materials, VAT, or other qualifying costs are involved.

How Does Our CIS Calculator Work?

Our Construction Industry Scheme calculator UK makes the calculation straightforward. Here is how it works:

Enter the Gross Payment

Enter the total amount due to the subcontractor before the CIS deduction.

Enter Qualifying Costs

Add eligible costs, such as materials paid for directly by the subcontractor, which may be excluded before calculating the CIS deduction.

Select the CIS Deduction Rate

Select the applicable CIS rate based on the subcontractor’s status, such as 20%, 30%, or 0% for gross payment status.

View the Results

The calculator estimates the amount subject to CIS deduction, the CIS deduction, and the subcontractor’s net payment.

VAT and certain qualifying costs may be excluded when calculating the amount subject to CIS deduction. The exact treatment depends on the circumstances.

Why Use Our Construction Industry Scheme Calculator?

Our CIS Calculator is a useful tool for contractors and businesses making payments to subcontractors. It can help you:

Calculate estimated CIS deductions
Work out the net payment to a subcontractor
Account for qualifying material costs
Apply the relevant CIS deduction rate
Check your calculations quickly
Reduce the time spent on manual calculations

Who Can Use This CIS Calculator?

The calculator can be useful for:

- Construction contractors
- Main contractors
- Businesses paying subcontractors
- Construction companies
- CIS subcontractors checking deductions
- Sole traders and limited companies working in construction

Need Help With CIS?

At CAIL, we understand that calculating CIS deductions can be confusing, particularly when payments include materials and VAT. Our Construction Industry Scheme Calculator UK provides a quick estimate, while our team can also help with CIS, bookkeeping, payroll and other accounting requirements.

Frequently Asked Questions

What is a Construction Industry Scheme Calculator?

A CIS calculator helps contractors estimate the CIS deduction from a subcontractor’s payment and the amount remaining to be paid.

How much CIS tax is deducted from subcontractors?

The standard deduction is currently 20% for registered and verified subcontractors. A 30% deduction can apply where the subcontractor is not registered or cannot be verified. Gross payment status can mean no CIS deduction is made.

Are materials included in CIS deductions?

Generally, the cost of materials that the subcontractor has paid for directly can be excluded when calculating the CIS deduction, subject to the CIS rules.

Is VAT included in the CIS calculation?

Where applicable, CIS deductions are calculated on the payment excluding VAT charged by a VAT-registered subcontractor. The treatment of VAT on materials can depend on the subcontractor’s VAT status.

Who needs to use the Construction Industry Scheme?

The CIS applies to contractors and subcontractors carrying out or paying for certain construction work in the UK. The specific CIS obligations depend on the nature of the business and payments involved.

Is the CIS Calculator an exact tax calculation?

No, it provides an estimate based on the information entered. Contractors should verify the subcontractor with HMRC and follow the applicable CIS rules when calculating and reporting deductions.

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