HMRC rates 2026–27

CIS deduction calculator

Estimate what a contractor withholds under the Construction Industry Scheme and what the subcontractor receives after materials and VAT are excluded.

CIS applies to the amount left after allowed exclusions. See GOV.UK guidance linked below.

Amount CIS applies to

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Deduction rate: —

CIS deducted

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Estimated net to subcontractor

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Official rates

StatusRate
Registered / matched20%
Unregistered / unmatched30%
Gross payment status0%

Sources: GOV.UK — make deductions · HMRC CISR71020

FAQ

What is CIS?

The Construction Industry Scheme rules how contractors pay subcontractors and withhold tax on account for HMRC. Deductions count as advance payments toward the subcontractor’s tax/NI.

Why exclude materials?

GOV.UK says start with the gross invoice, then take away VAT, materials the subcontractor paid for directly, and certain plant/fuel/consumables, then apply the CIS percentage to what remains.

Who sets the rate?

HMRC tells the contractor the rate when they verify the subcontractor. Use registered (20%), unregistered (30%), or gross (0%) as appropriate.

Is this tax advice?

No. This is an estimate for illustration. Confirm with HMRC guidance or an accountant.