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UK · Construction Industry Scheme · free, no signup
CIS invoice generator, with the deduction worked out
If you're a subcontractor under the Construction Industry Scheme, your invoice has to split labour from materials, because the contractor deducts CIS tax from the labour only. Put in your numbers below — this works out the 20% or 30% deduction and opens a finished invoice with the split already done. It runs in your browser, so your rates never leave your device.
Net the contractor pays you
after CIS deduction
Opens Billfold with your CIS invoice pre-filled. Free, no signup.
Guidance, not tax advice. The deduction is worked out on labour excluding VAT, which is how HMRC calculates it. Keep your materials receipts.
How the CIS deduction works on the invoice
Under CIS, the contractor deducts a percentage from your payment and pays it to HMRC as an advance on your tax. The rate is 20% if you're registered for the scheme, or 30% if you're not. Crucially, the deduction applies to your labour only, not to materials you paid for directly. So the calculation runs:
gross labour (excluding VAT) × 20% = CIS deducted → labour + materials − deduction = net paid to you
The generated invoice shows this cleanly: a labour line, a separate materials line (no deduction), and a "less CIS deduction" line so the contractor and you both see the net payable. VAT is kept out of the figure the deduction is calculated on — CIS is always worked out on the amount excluding VAT.
The contractor must also give you a payment and deduction statement within 14 days of the tax month end; keep those, as they're your proof of tax already paid.
Questions
Is 20% or 30% deducted?
20% if you're registered with HMRC for the Construction Industry Scheme, 30% if you're not registered or can't be verified. Registering is worth it purely for the cash-flow difference. Switch the toggle above to see both.
Is the deduction taken from materials too?
No. The CIS deduction applies only to the labour element. Materials you paid for directly (keep the receipts) are taken off before the deduction is calculated. That's why the generator puts them on separate lines.
Do I show the CIS deduction on my invoice?
You don't have to, but many subcontractors do, so the contractor can see the net to pay and there are no surprises. Either way, the formal record is the contractor's payment and deduction statement.
What about VAT and the reverse charge?
If you're VAT-registered, most construction services between VAT-registered businesses fall under the domestic reverse charge — you don't charge VAT and you note that the customer accounts for it. The CIS deduction is always calculated on the amount excluding VAT.
Does this store or send my figures?
No. Every calculation runs in your browser on your own device. Nothing is uploaded or logged, because the tool has no server. Close the tab and nothing is kept.
Bill the job, keep the receipts.
Generate a CIS-ready invoice with the deduction split out, export a clean PDF — in your browser, no account.
Open a CIS invoice →Sources
- GOV.UK — Make deductions and pay subcontractors (rates, labour vs materials, statements).
- GOV.UK — CIS subcontractor: get paid.
Guidance, not tax advice. New to this? Read how to invoice as a subcontractor and what a subcontractor invoice must include, or the cited invoice requirements by country.