CIS Deductions Calculator (UK 2024)
Free CIS deductions calculator. Calculate CIS deductions for verified, unverified, and gross payment subcontractors. Handles materials deductions correctly.
CIS Deductions Calculator
Calculate CIS deductions for your subcontractor payments. Enter the payment details below.
£
Enter the invoice amount before VAT
£
Materials supplied by subcontractor (excluded from CIS)
Calculation Breakdown
Gross Payment£10,000.00
Less: Materials (not subject to CIS)- £2,000.00
Labour Element (CIS applies)£8,000.00
CIS Deduction (20%)
- £1,600.00Net Payment to Subcontractor£8,400.00
Labour Subject to CIS
£8,000.00
CIS Deduction
£1,600.00
Net Payment
£8,400.00
Remember to include in your monthly return
This deduction of £1,600.00 must be included in your monthly CIS return to HMRC, due by the 19th of the following month.
This calculator provides estimates for guidance only. CIS rules can be complex and depend on your specific circumstances.
- VAT is not included in CIS calculations
- Verify subcontractor status with HMRC before each payment
- Keep records of all verifications and deductions
- Consult your accountant for specific advice
Frequently Asked Questions
How do I calculate CIS deductions?
CIS deduction = (Gross payment - Materials) x Deduction rate. For example, a £10,000 payment with £2,000 materials and 20% rate: (£10,000 - £2,000) x 20% = £1,600 deduction. Net payment = £8,400.
Are VAT amounts included in CIS calculations?
No. CIS deductions are calculated on the net (before VAT) amount. If an invoice shows £10,000 + £2,000 VAT = £12,000 total, the CIS calculation is based on £10,000 (minus any materials).
What if the subcontractor supplies their own materials?
Materials supplied by the subcontractor are excluded from CIS deduction. The invoice should clearly separate labour and materials. Only the labour element is subject to CIS.
How do I record CIS deductions for my monthly return?
Keep records of each payment showing: subcontractor name and UTR, gross payment, materials (if any), deduction rate, deduction amount, and net payment. These details are needed for your monthly CIS return.