Deduction rates
| Status | Deduction |
|---|---|
| Registered subcontractor | 20% |
| Not registered | 30% |
| Gross payment status | 0% |
Refund example
Dan, a plasterer, invoices £40,000 of labour. His contractors deduct £8,000. With £5,000 of expenses his profit is £35,000, so his Income Tax is £4,486 and Class 4 NI £1,345.80. He's paid £8,000, so he's owed about £2,168 back.
Gross payment status
You can apply if you've a record of paying tax on time and turnover of at least £30,000 (sole trader) from construction work, excluding materials.
Deductions need a paper trail
Keep contractor payment statements alongside invoices and expense records. A possible refund estimate only becomes meaningful when the income and deductions used in it can be reconciled.
Try it with your own numbers
Calculate CIS deductions at 20% or 30% and estimate whether you're due a tax refund at the end of the 2026/27 tax year.
Frequently asked questions
How do I claim a CIS refund?
Sole traders claim through their Self Assessment return. Limited companies offset deductions against their PAYE bill.
Check it on GOV.UK: What is the Construction Industry Scheme (opens GOV.UK in a new tab)
Sources
Tax year 2026/27. Check these official sources for current rules and deadlines.
Related calculators
- CIS Tax Calculator — Calculate CIS deductions at 20% or 30% and estimate whether you're due a tax refund at the end of the 2026/27 tax year.
Related guides
- Tax for the Self-Employed — How sole traders are taxed in the UK: Income Tax on profit, Class 4 NI, allowable expenses and payments on account.
- Self Assessment Explained — Who needs to file a Self Assessment tax return, what goes on it, the deadlines for 2026/27 and the penalties for missing them.