Calculate your take-home pay as a CIS subcontractor. The calculator shows your net pay after CIS deductions, plus estimated tax and NI due at year end.
CIS Subcontractor Net Pay Calculator UK 2025/26
Net Pay After CIS
CIS Subcontractor Pay — 2025/26
Under the Construction Industry Scheme (CIS), contractors must deduct money from subcontractor payments and pass it to HMRC. This is not a final tax — it is an advance payment against your Self Assessment tax bill. Most subcontractors receive a CIS refund at year end.
CIS Net Pay Example (2025/26)
Scenario
Monthly Gross
CIS (20%)
Net
Low earner
£1,500
£300
£1,200
Average
£3,000
£600
£2,400
High earner
£6,000
£1,200
£4,800
Frequently Asked Questions
How much does CIS reduce my take-home pay?
Registered subcontractors have 20% deducted from labour payments. Unregistered pay 30%. This is an advance payment of tax, not your final tax bill — most subcontractors receive a refund.
What is CIS and why do contractors deduct it?
CIS (Construction Industry Scheme) is an HMRC scheme requiring contractors to deduct tax from subcontractor payments. It ensures HMRC receives tax from the construction industry throughout the year.
How do I become CIS registered?
Register online at hmrc.gov.uk/cis using your UTR (Unique Taxpayer Reference). Registration reduces your deduction from 30% to 20% immediately.
Do CIS deductions include materials?
No — CIS is only deducted from labour payments. If a contractor cannot separate labour and materials, they must deduct from the full payment.
When do contractors pay CIS to HMRC?
Contractors must pay deductions to HMRC by the 19th (22nd if paying electronically) of the following month. They give subcontractors a monthly CIS deduction statement.
Does CIS count as income tax?
CIS deductions count against your Self Assessment income tax and Class 4 NI bill. Any over-deduction becomes a refund when you file your return.
Can self-employed workers be CIS subcontractors?
Yes — most CIS subcontractors are self-employed sole traders. Limited company subcontractors can also be CIS registered and receive the 20% rate.
What if a contractor deducts CIS from materials?
If a contractor incorrectly deducts CIS from materials, you can challenge this. Keep invoices separating labour and materials clearly.
Do I still pay NI if CIS is deducted?
Class 4 NI (9% on profits between £12,570 and £50,270) is calculated through Self Assessment. CIS does not cover NI — you pay NI when you file your tax return.
What happens if I don't file Self Assessment?
HMRC will issue penalties starting at £100. You will also not be able to claim your CIS refund. Always file by 31 January.
Can limited companies be CIS subcontractors?
Yes — limited company subcontractors can be CIS registered. The company receives the net payment, and CIS deductions are offset against the company's PAYE/CIS bill.
What is gross payment status in CIS?
Gross payment status allows contractors to pay subcontractors without deductions. Requires HMRC approval, annual turnover over £30,000 (sole trader), and a clean compliance record.