CIS Gross Payment Status Calculator UK 2026
Find out if you qualify for CIS gross payment status and calculate your annual cashflow saving from avoiding the 20% CIS deduction.
CIS Gross Payment Status Calculator
Understanding CIS Gross Payment Status
The Construction Industry Scheme (CIS) requires contractors to deduct money from subcontractor payments and pass it to HMRC as advance tax payments. With gross payment status, subcontractors receive their full payment — the contractor makes no deduction. This can free up significant working capital, particularly for larger subcontractors.
HMRC assesses gross payment status applications against three tests: the business test (must be a genuine construction business), the turnover test (minimum thresholds based on business structure), and the compliance test (all tax obligations must be current).
Frequently Asked Questions
What is CIS gross payment status?
CIS gross payment status allows eligible subcontractors to receive full contract payments without the contractor deducting CIS tax (normally 20% for registered subcontractors or 30% for unregistered). HMRC grants gross status to businesses that meet turnover, compliance, and business tests, improving cashflow significantly.
How do I apply for CIS gross payment status?
Apply online via your HMRC Government Gateway account or by calling the CIS helpline on 0300 200 3210. You must pass three tests: the business test (operating a construction business), the turnover test (minimum annual turnover thresholds), and the compliance test (tax affairs up to date for the past 12 months).
What are the turnover thresholds for CIS gross payment status?
The minimum annual turnover from construction work (net of materials) is £30,000 for sole traders; £30,000 per partner for partnerships; and £30,000 per director for companies (with a minimum of £100,000 for the company as a whole). Turnover must be demonstrated over the previous 12 months.
Can CIS gross payment status be withdrawn?
Yes. HMRC can withdraw gross payment status if you fail to comply with tax obligations — for example, filing tax returns late, not paying tax on time, or making errors. HMRC reviews gross status holders periodically. Once withdrawn, you cannot reapply for 12 months.
Is CIS gross status better for cashflow than standard CIS?
Yes, significantly. Under standard CIS, 20% is deducted from every payment you receive, which you only recover when you file your Self Assessment or Corporation Tax return — often 12+ months later. Gross status means you receive 100% of payments upfront, vastly improving working capital and cashflow.