CIS Deduction Calculator, 2026/27
Contractors must deduct tax from subcontractor payments under the Construction Industry Scheme before materials are excluded. Enter the gross payment, materials cost and the subcontractor's registration status to see the deduction and net payment.
The cis deduction calculator runs on the rates and thresholds HMRC has published for the 2026/27 tax year, so the figures you see reflect the position your company is actually filing on rather than a historic set of bands. Change any input and the result recalculates immediately, with no sign-up and nothing sent anywhere.
If you are a director of a UK limited company, use it as a first look before a decision rather than as the decision itself. Standard CIS deduction rates are 20% for verified registered subcontractors and 30% for those who cannot be verified or are not registered; subcontractors with gross payment status have no deduction. Real company positions bring in other income, reliefs, group structures and prior year adjustments that a single page of inputs cannot see, which is why the workings are written out below under personal & self assessment tax. Read those, then check the numbers against your own accounts, and speak to us if anything looks materially different from what you expected.
Last reviewed 12 September 2026 for the 2026/27 tax year. Reviewed by Waqas Sagar, Member of ICAEW, Fellow of ACCA, Fellow of AAT.
Regulated by
Regulated & AML supervisor
AAT fellow member
Xero Gold PartnerCertified advisor
QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityCIS Deduction Calculator
Result, 2026/27
CIS deduction to withhold
Labour element the deduction applies to
Materials excluded from the deduction
Net payment to the subcontractor
Illustration only, figures are based on the rates you have selected and the information entered. Please check your own position with us before acting.
Estimates for the 2026/27 tax year using published GOV.UK rates. Switch between 2026/27 and 2025/26 above.
How this is calculated
Under the Construction Industry Scheme, a contractor paying a subcontractor for construction work must first verify the subcontractor's status with HMRC, which confirms whether to deduct tax at the standard 20% rate, the higher 30% rate for unverified subcontractors, or nothing at all for those with gross payment status.
Before applying the deduction rate, the contractor strips out the genuine cost of materials the subcontractor incurred, since CIS deductions only apply to the labour and other qualifying elements of the payment, not to materials the subcontractor has already paid for.
The calculator subtracts your materials figure from the gross payment to find the labour element, applies the selected deduction rate to that labour element only, and shows the resulting net payment due to the subcontractor.
Contractor responsibilities
Contractors must register with HMRC for CIS, verify each new subcontractor before the first payment, deduct the correct amount, provide a written statement of the deduction, and pay the deducted amounts over to HMRC monthly, alongside a CIS return.
Getting the materials split wrong, or failing to verify a subcontractor and using the wrong rate, can lead to penalties and having to make good any underpaid deduction, so keeping clear evidence for every materials claim matters.
What happens to the deduction
For a subcontractor who is a sole trader, CIS deductions withheld during the year are treated as payments on account of their income tax and Class 4 National Insurance liability, reconciled through their self-assessment tax return.
Where deductions exceed the actual tax and National Insurance due, the excess becomes a repayment, which is exactly the position the CIS Tax Rebate Calculator is designed to estimate.
What this means for your company
Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.
Frequently asked questions
What is the standard CIS deduction rate?
20% for subcontractors who are registered with HMRC and successfully verified by the contractor, rising to 30% for subcontractors who cannot be verified or are not registered, and 0% for those with gross payment status.
Are materials always excluded from the deduction?
Only the genuine cost of materials the subcontractor has actually paid for is excluded, and the contractor should have reasonable evidence of that cost; if materials cannot be evidenced, the whole payment may be treated as labour.
Does CIS apply to limited company subcontractors too?
Yes, contractors deduct CIS from company subcontractors in the same way, but the company then offsets the deductions suffered against its PAYE and National Insurance liabilities rather than through personal self-assessment.
What if I have gross payment status?
Subcontractors with gross payment status are paid in full with no CIS deduction, but they still need to pay their tax and National Insurance through self-assessment in the normal way, usually in two instalments during the year.
Keep going
Related calculators
Same rates, different question.
CIS Tax Rebate Calculator
Estimate the CIS tax rebate you could be owed for 2026/27 by comparing tax already deducted at source against your actual income tax and Class 4 NI bill.
CalculatorEmployed vs Self-Employed Calculator
Compare take-home pay for the same income as an employee versus self-employed for 2026/27, including tax, employee NI, employer NI and Class 4 NI.
CalculatorEmployed and Self-Employed Tax Calculator
Calculate combined income tax and National Insurance for 2026/27 when you have both a PAYE salary and self-employed profit in the same tax year.
CalculatorBusiness Mileage Calculator
Calculate tax-free mileage claims for 2026/27 using HMRC's approved mileage allowance payment rates for cars, motorcycles and bicycles.