How do I work out a CIS deduction?
Facts last checked
Transcript
How do I work out a CIS deduction? Start with the invoice total, take off VAT and what you paid for materials, hired plant, consumables and job fuel, then apply 20%, 30% or 0%. In 2026-27, labour-only work of £1,500 at 20% loses £300. No. The contractor first takes off VAT and what you paid for materials, consumables, fuel used on the job and plant you hired. The 20% or 30% applies only to what is left. Yes, if the contractor pays them to you or on your behalf. CIS 340 says travel, including fuel for travelling, and subsistence are part of the amount the deduction is taken from. The contractor can ask for receipts. If you have no evidence, GOV.UK says the contractor estimates the cost of the materials and takes the deduction from the rest. Read the full answer, with every source, at rightotax.co.uk.
Voice and visuals made with automated software, including AI.
Read the full answer, with every source
The one-minute version
Transcript
How do I work out a CIS deduction? Start with the invoice total, take off VAT and what you paid for materials, hired plant, consumables and job fuel, then apply 20%, 30% or 0%. In 2026-27, labour-only work of £1,500 at 20% loses £300. No. The contractor first takes off VAT and what you paid for materials, consumables, fuel used on the job and plant you hired. The 20% or 30% applies only to what is left. Read the full answer, with every source, at rightotax.co.uk.
Voice and visuals made with automated software, including AI.
This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.
Righto Tax is a trading name of NJG Consultancy Ltd, registered in England and Wales, company number 16095900. Registered office: Jubilee House, East Beach, Lytham St Annes, FY8 5FT.