Tax year 2026/27
CIS Tax Calculator 2026/27 — How much will you take home after 20% / 30% CIS deduction?
Contractor deducted 20% or 30%? Work out your net pay, what to put aside for tax and NI, and if you qualify for Gross Payment Status.
- Updated for 2026/27
- Materials exclusion included
- Used by subcontractors across Manchester & Warrington
Your invoice
Figures update as you type. Nothing leaves your phone.
You will receive now
£2,000.00
Gross £2,500.00 − CIS £500.00
Year estimate — Monthly invoices
Your HMRC position
£2,508.20
You should get a REFUND — CIS deducted is more than your tax and NI for the year.
Monthly take home after setting money aside
£1,875.68
Profit for the year, minus tax, NI and student loan, spread over 12 months.
Gross Payment Status
With Gross Payment Status you would keep the full £2,500.00 now instead of £2,000.00 — £6,000 a year staying in your account until Self Assessment.
Payment & Deduction Statement
HMRC-style one-page PDF you can file or hand to your accountant — parties and UTRs, gross, materials, CIS deducted and net paid.
Send this to my accountant
We will email a copy of these figures so they can check your position before the January deadline.
Need a CIS accountant?
FreeAgent and QuickBooks handle CIS deductions automatically — invoices, materials splits and Self Assessment. Get 30 days free + £75 cashback.
Apply for Gross Payment Status
Keep 100% of your invoice — no 20% held back. Pass the turnover, compliance and business tests and we will handle the HMRC application for you. On your figures that is £6,000 a year staying in your account.
Check if I qualifyExplain my CIS pay & refund
Put in your payment and deduction details and get a plain-English rundown of your net pay, likely refund and what to do at Self Assessment.
Your explanation appears here — net pay, refund or shortfall, and the Self Assessment steps to take next.
CIS Calculator for Contractors
Paying a subcontractor? Enter their invoice and we will work out the deduction to withhold and the figures to enter on your monthly CIS return.
Deduct and pay to HMRC
£440.00
Pay the subcontractor £2,060.00 (plus VAT if they charge it)
Enter on your monthly CIS return
- Total payments (excl. VAT)
- £2,500.00
- Cost of materials
- £300.00
- Amount liable to deduction
- £2,200.00
- Deduction rate
- 20%
- Total deducted
- £440.00
Return for the tax month 6 Sept 2026 – 5 Oct 2026 is due by 19 Oct 2026. Late returns start at a £100 penalty. Issue each subcontractor a payment and deduction statement too.
CIS questions, answered straight
01What is CIS tax 20% and 30%?
Under the Construction Industry Scheme the contractor takes tax off your labour before paying you and sends it to HMRC. If you are registered under CIS the rate is 20%. If HMRC cannot verify you — usually because you never registered — the contractor must deduct 30%. Holders of Gross Payment Status have 0% deducted. The deduction is not an extra tax, it is an advance payment towards your Income Tax and Class 4 National Insurance.
02Does CIS deduction include materials?
No. CIS is only due on the labour part of your invoice. Materials you paid for yourself — plus plant hire you paid for, and VAT — must be excluded before the deduction is worked out. Always show materials as a separate line on your invoice, otherwise the contractor may deduct CIS on the whole amount and you are out of pocket until your tax return.
03How do I get Gross Payment Status (0% CIS)?
You apply to HMRC and must pass three tests: the business test (you do construction work in the UK and run it through a bank account), the turnover test (at least £30,000 of labour turnover, or £30,000 per partner/director), and the compliance test (returns and payments filed on time for the last 12 months). Once approved, contractors pay you in full and you settle all tax through Self Assessment.
04How much CIS will I get back as a refund?
Your refund is the CIS deducted across the year minus the Income Tax, Class 4 National Insurance and student loan actually due on your profit. Because 20% is taken off your whole labour figure with no allowance for your £12,570 personal allowance or your expenses, most subcontractors end up owed money. This calculator shows whether you are due a refund or need to put more aside.
05Do I still need to do Self Assessment if CIS is deducted?
Yes. CIS deductions are payments on account, not a final tax bill. You still file a Self Assessment return each year by 31 January, declare your turnover and expenses, and enter the CIS suffered. HMRC then works out the balance — either a refund to you or more to pay.
06What is reverse CIS?
People use it for two things. Most often they mean the VAT domestic reverse charge: for most construction services between VAT-registered businesses, you do not charge VAT, the contractor accounts for it instead. It can also mean reverse-calculating the gross figure to invoice so that you take home a specific amount after the CIS deduction — use the reverse calculator at the top of this page for that.