This calculator will calculate the CIS tax deductions. An easy to use calculator that includes tips to ensure you deduct the correct CIS tax.
Contractors can use this CIS tax deduction calculator to work out the correct deductions to make. It includes all types of CIS calculations including 30%, 20% and 0% tax rates.
To ensure that contractors use the calculator correctly we have included some useful tips.
Useful Tips on our CIS Calculator
To ensure that our CIS tax deduction calculator is used correctly we have included some useful tips on each section of the calculator below.
The subcontractor CIS status informs the contractor what CIS tax rate to apply. There are 3 different rates of gross, net or not registered.
It is HMRC that provides the deduction tax rate. This is done when completing the subcontractor verification.
The invoice provided by the subcontractor should state the VAT rate charged.
There is an added complication within the construction industry that some invoices are treated as reverse VAT. If you are unsure try our VAT Reverse Charge Construction Solver to see if reverse VAT applies.
The invoice should state the split between labour and materials. This is a requirement of the subcontractor unless they are registered with gross payment status.
To use the CIS tax deduction calculator correctly it is important to identify the qualifying materials. Only enter qualifying materials in the materials box. The rest is added to labour.
For example travel costs or accommodation fees are not qualifying materials, so they should be added to the labour value.
After entering the figures above, it is important to check the Net, VAT and Gross figures agree to the invoice.
The CIS tax deduction calculator will work out how much CIS tax to deduct. This amount is payable to HMRC on the monthly return.
The final figure is the amount to pay to the subcontractor. If CIS tax has been deducted the contractor must provide a payment and deduction statement to the subcontractor.
For further assistance see our CIS calculation examples blog.
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