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Construction Industry Scheme (CIS) for subcontractors
If a contractor takes tax off your pay before you get it, you're probably working under CIS. These guides explain what's happening to your money and how to get back anything you've overpaid.
CIS20%taken off labour if you're registered for CIS
30%taken off if you're not registered
£0taken off materials: CIS is on labour only
CIS in 30 seconds
- Contractors take 20% off the labour part of your invoice if you're registered for CIS, or 30% if you're not. Materials aren't included.
- That money is paid to HMRC as an advance on your tax and Class 4 National Insurance.
- At the end of the year your Self Assessment return works out your real bill. If more was deducted than you owe, you get a refund.
- Keep every monthly CIS statement, because you'll need them for your return.
CIS and Making Tax Digital
From April 2027, subcontractors whose gross turnover (before the CIS deduction and before expenses) was over £30,000 in 2025 to 2026 will need to keep digital records and send quarterly updates. Read our Making Tax Digital guide or check your start date.
Guides coming soon
- How CIS refunds work, and how to claim yours
- Checking your monthly CIS statements
- Making Tax Digital for plumbers, builders and other subcontractors
Template that helps
CIS Subcontractor Tax Tracker 2026/27: log each payment and statement, check the deductions, track expenses and see an estimate of your refund. Excel and Google Sheets.