Does CIS apply to materials?

Does CIS apply to materials? No. As of October 2026, contractors work out the Construction Industry Scheme (CIS) deduction after removing VAT and the cost of materials you bought yourself, so the 20% or 30% falls only on the labour part. No, if you bought them yourself for the job. The contractor takes the cost of those materials off your invoice before working out the 20% or 30% deduction. Materials the contractor supplied do not come into it. It depends on you. If you are not VAT registered, the VAT you paid on materials is part of their cost. If you are VAT registered, materials are counted without VAT, because you reclaim it. GOV.UK says the contractor may ask for evidence such as receipts. If you have none, the contractor estimates the cost of the materials. Read the full answer, with every source, at rightotax.co.uk.