CIS deductions & your likely refund

Built by people who actually work in the trades. Enter your labour income and expenses — we show what the contractor deducts, what you really owe HMRC, and the refund in between.

Tax year 2026 / 27

Your details

Labour income (excl. materials) — amount & period

CIS deduction rate

Allowable expenses per year (tools, van, fuel, insurance, phone…)

CIS position

NetWage · 2026/27

Estimated refund

£—

CIS deductions are an advance on your tax, taken from labour only (never materials). Your real bill is worked out at self-assessment on profit — income minus expenses — which is why most subbies with genuine expenses are due money back every year.

How CIS really works

Under the Construction Industry Scheme the contractor deducts 20% (or 30% if you're unverified) from the labour element of every invoice and pays it to HMRC on your behalf. At self-assessment your actual liability is Income Tax plus Class 4 National Insurance on your profit — and because the flat deduction ignores your personal allowance and expenses, the scheme systematically over-collects from most subcontractors.

Keep every receipt: van costs, mileage, tools, PPE, insurance, phone and accountancy fees all reduce profit. Apply for gross payment status once turnover and compliance history allow — it transforms cash flow.