What are the CIS deduction rates?

What are the CIS deduction rates? There are 3 CIS rates in October 2026: 20% if you are registered and verified, 30% if you are not, and 0% if you hold gross payment status. HMRC sets which one your contractor uses. HMRC does. Before paying a new subcontractor, the contractor verifies them with HMRC, and HMRC tells the contractor whether to deduct 20%, 30% or nothing. The contractor cannot choose a rate. No. GOV.UK calls deductions advance payments towards your tax and National Insurance. Your real bill is worked out on your tax return, and any amount paid over is repaid. No. The deduction is worked out after taking off VAT and the cost of materials you paid for yourself, along with consumables, plant you hired and fuel used other than for travel. Read the full answer, with every source, at rightotax.co.uk.