CIS for subcontractors: how deductions work and getting money back
Updated 11 October 2026 · 2026/27 tax year
If you work for building contractors, they'll probably take money off your invoices under the Construction Industry Scheme (CIS) and pay it to HMRC for you. Here's how it works and how to make sure you get back what you're owed.
The rates
- 20% if you're registered for CIS
- 30% if you're not, so register with HMRC if you do construction work
- 0% if you have gross payment status
Labour, not materials
CIS is taken off the labour part of your invoice only. Show materials separately: they're paid in full. CIS isn't taken off VAT either.
Monthly statements
Contractors should give you a statement each month showing what they paid you and what they took off. Keep them and check them against your own records.
CIS counts towards your tax
What's been taken off is tax you've already paid. It comes off your Income Tax and National Insurance bill when you do your return, and if more was taken than you owe, HMRC pays you back.
Your invoices
Invoice the full amount and show the CIS deduction, so the amount due is clear. Record the full amount as income, not just what landed in your bank.
This guide is general information, not tax advice. Check HMRC's guidance or ask an accountant about your own situation.