Rated Excellent on Trustpilot - Accounting Wise

CIS Tax Deduction Calculator

Manage your finances effortlessly with our CIS Tax Deduction Calculator

Designed for contractors and subcontractors in the UK’s Construction Industry Scheme (CIS), this tool helps you accurately calculate the tax deductions from your payments. Avoid surprises by understanding exactly how much tax is withheld and how much you’ll take home, making it easier to plan your budget and stay compliant with HMRC requirements.

Build Your Own Package Accounting Packages One Off Pricing
cis tax deduction calculator Hero Image

CIS tax deduction calculator

This calculator helps calculate any necessary CIS tax deductions.

The cost of all labour charged (net of travel and subsistence and any VAT charged by the sub contractor).

The cost of all materials supplied (Include VAT if the sub contractor is not VAT registered).

Is the subcontractor verified with HMRC for payment under deduction?

Note: These calculations are only for illustrative purposes and are not a substitute for professional advice.

Need assistance? Connect with our Accounting Experts today!

Request Call Back

What is CIS Tax Deduction?

The Construction Industry Scheme (CIS) is a UK tax system introduced by HMRC to ensure proper tax compliance within the construction sector. Under CIS, contractors are required to deduct tax directly from payments made to subcontractors and then forward those deductions to HMRC. These deductions typically cover the subcontractor’s income tax and National Insurance contributions. The standard rate of deduction is 20% for registered subcontractors, while unregistered ones may face a higher rate of 30%.

What is CIS Tax Deduction Scheme?
Why is CIS Tax Deduction important - accounting wise

Why is CIS Tax Deduction important?

CIS tax deductions are crucial for maintaining financial transparency and ensuring that subcontractors contribute appropriately to their taxes. For subcontractors, the deductions act as a prepayment towards their overall tax bill, with the potential for refunds or additional payments depending on their annual earnings and expenses. For contractors, complying with CIS rules helps avoid penalties and ensures smooth financial transactions within the industry. Understanding how these deductions work allows both parties to manage their finances effectively and meet their tax obligations.

Get started with the right online accounting service for your UK small business

Build Your Own Package Accounting Packages One Off Pricing

Hot Topics

More related Accounting Community, News & Resources

How to Set Up a PAYE Scheme for Your UK Business

How to Set Up a PAYE Scheme for Your UK Business

In this guide, we’ll take you through the step-by-step process of setting up a PAYE scheme for your business, ensuring you meet your legal obligations while managing payroll efficiently.
8 benefits of business insurance

8 Benefits of Business Insurance: Protecting Your Business Assets

In this article, we’ll explore the top benefits of business insurance and why it’s an essential investment for businesses of all sizes.
Understanding the Difference Between Net and Gross Profit - accounting wise

Understanding the Difference Between Net and Gross Profit: Why It Matters for Your Business

Two key metrics that often cause confusion are gross profit and net profit. In this guide, we’ll break down the differences between the two, how to calculate them, and why they matter for your business.

Online Company Formation Services

Free company formation with our Pre-Built or Bespoke Accounting packages!

All official documents provided

Online Hub to manage your company

London Registered office Address

Your own incorporated limited company

Find Out More
Rated Excellent on Trust Pilot - Accounting Wise Logo

Get started with the right accounting solution for your business

Build Your Own Package Accounting Packages One Off Pricing

Contact Us

Interested in Accounting Wise?

Request Call Back 0330 113 8442

Accounting Wise is a trading style of Accounting Wise Ltd, a limited company registered in England under company number 09365202. Our registered office is: The Carriages, Station Road, Ware, SG12 9PL UK.

Content is for general information only. Always take advice.