CIS Tax Calculator 2026/27
If you receive a gross payment of £2,000 as a registered CIS subcontractor, your contractor deducts £400 (20%) and pays you £1,600. If unregistered, the deduction is £600 (30%), leaving you £1,400. Subcontractors with gross payment status receive the full £2,000 with no deduction. Use our CIS calculator for your exact deduction and net pay.
Figures verified against HMRC Income Tax rates on .
Written by James HartleyCIMA
Calculator
Enter the amount before CIS deduction
Your status determines the deduction rate
Used to calculate your annual projection
Results
CIS deduction
£400.00
20% rate · You receive £1,600.00
- Gross payment£2,000.00
- Net payment to you£1,600.00
- Annual gross (est.)£24,000
- Annual net (est.)£19,200
Payment Breakdown
How to Claim Your CIS Rebate
- CIS deductions count as tax paid on your Self Assessment return - they offset your income tax and NI liability.
- File your Self Assessment by 31 January each year. HMRC will refund any overpaid CIS automatically.
- Keep all CIS statements from your contractors - you'll need these to complete your tax return.
Annual Projection at Different Income Levels
| Monthly Gross | Annual Gross | Annual CIS Deduction | Annual Net |
|---|---|---|---|
| £500 | £6,000 | − £1,200 | £4,800 |
| £1,000 | £12,000 | − £2,400 | £9,600 |
| £1,500 | £18,000 | − £3,600 | £14,400 |
| £2,000 | £24,000 | − £4,800 | £19,200 |
| £3,000 | £36,000 | − £7,200 | £28,800 |
| £5,000 | £60,000 | − £12,000 | £48,000 |
| £7,500 | £90,000 | − £18,000 | £72,000 |
| £10,000 | £120,000 | − £24,000 | £96,000 |
If you've been CIS registered for 12+ months with a good compliance record, apply for Gross Payment Status (0% deductions). You'll receive full payment and settle tax via self assessment.
These insights are generated based on your inputs and general UK financial guidelines. They do not constitute personal financial advice. Always consult a CIMA-qualified accountant or FCA-regulated adviser before making financial decisions.
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How CIS Tax Calculator 2026/27 Works
What is CIS?
The Construction Industry Scheme (CIS) requires contractors to deduct money from subcontractor payments before passing the remainder to the worker. These deductions go directly to HMRC and count as advance payments towards the subcontractor's income tax and National Insurance bill. For registered vs unregistered rates, gross payment status, and how deductions feed into self assessment, see our CIS deductions guide.
Three CIS Deduction Rates - 2026/27
There are three CIS deduction rates depending on your HMRC registration status:
| Status | Deduction Rate | Net Pay on £1,000 | How to Qualify |
|---|---|---|---|
| Registered subcontractor | 20% | £800 | Register for CIS at gov.uk or via HMRC helpline |
| Unregistered subcontractor | 30% | £700 | Default rate - registering drops this to 20% immediately |
| Gross payment status | 0% | £1,000 | Apply after meeting HMRC's turnover and compliance tests |
Source: HMRC Construction Industry Scheme (gov.uk/what-is-the-construction-industry-scheme) - verified April 2026
What counts as a CIS payment?
CIS applies to the labour element of payments only. If you invoice separately for materials, plant hire, or consumables and can evidence these costs, the contractor should apply CIS only to the labour portion. This can significantly reduce your deduction, so always invoice clearly.
How to reclaim CIS deductions
CIS deductions are not a final tax. When you file your Self Assessment return each January, HMRC compares total CIS deducted against your actual tax liability. If you have had too much deducted, which is very common, HMRC issues a refund. Most CIS subcontractors receive a rebate every year.
Annual projection
The projection table multiplies your weekly payment by 52 or monthly by 12 to estimate annual figures. For custom amounts, the figure shown is the single-payment projection only.
Frequently Asked Questions
The Construction Industry Scheme (CIS) is an HMRC tax scheme that applies to contractors and subcontractors working in the UK construction industry. Under CIS, contractors deduct money from subcontractor payments and pass it directly to HMRC. It covers work like building, alterations, repairs, decorating, and demolition. It does not apply to employees covered by PAYE or work outside the construction sector.
The deduction rate depends on your registration status. Registered subcontractors have 20% deducted. Unregistered subcontractors have 30% deducted. Subcontractors with gross payment status have 0% deducted and receive their full payment. The deduction applies to the labour element only. Materials costs can be excluded if invoiced separately.
To register as a CIS subcontractor, you need a Government Gateway account and your Unique Taxpayer Reference (UTR). You can register online at gov.uk/register-as-subcontractor. Once registered, contractors can verify you with HMRC and apply the lower 20% rate instead of 30%. Registration is free and typically takes a few days to process.
Yes. CIS deductions are treated as advance tax payments. When you file your Self Assessment return, HMRC calculates your actual income tax and National Insurance liability. If your CIS deductions exceed your total tax bill (which is common, as CIS does not account for allowable expenses), HMRC will refund the difference. Keep all CIS deduction statements from contractors as evidence.
Gross payment status means HMRC allows contractors to pay you in full with no CIS deductions. To qualify, you must meet HMRC's turnover tests (minimum £30,000 for sole traders), have a clean tax compliance record, and run your business through a bank account. Apply via your Government Gateway account. Gross payment status is reviewed annually by HMRC.
Related Guides
CIS Registration: Step-by-Step Guide for Subcontractors
How to register with HMRC CIS, reduce your deduction rate from 30% to 20%, and claim back overpayments.
Read guideSelf Assessment for Construction Workers
A complete guide to filing your CIS Self Assessment return and maximising your tax refund.
Read guideCIS Subcontractor Guide 2026/27
Everything a CIS subcontractor needs: deduction rate tables, how to reclaim overpaid tax via Self Assessment, gross payment status application guide, and a monthly cash-flow tracker.
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Official Rates Used
This calculator uses official HMRC rates for 2026/27. View the current rates at GOV.UK:
Rates last verified:
Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.