How much tax does a CIS subcontractor pay?

How much tax does a CIS subcontractor pay? In 2026-27, a CIS subcontractor pays Income Tax and Class 4 National Insurance on profit after costs. On £45,000 of labour with £8,000 of costs, that is £6,351.80, against £9,000 taken in CIS deductions. No. The 20% is an advance payment. Your real bill is Income Tax and Class 4 National Insurance on your profit after costs and your personal allowance, worked out on your tax return. Outside Scotland, Income Tax is 20% on taxable income from £12,571 to £50,270 and 40% from £50,271 to £125,140. Class 4 National Insurance is 6% on profits from £12,570 to £50,270 and 2% above. Not as a charge. For 2026-27, Class 2 is treated as paid if your profits are £7,105 or more. Below that, you can choose to pay voluntary Class 2 at £3.65 a week. Read the full answer, with every source, at rightotax.co.uk.