CIS deduction calculator
Work out the CIS to take off a subbie's payment, or the gross that leaves the net you agreed. Free, no account, and it all happens on this page: nothing you type is stored or sent.
What to pay
- CIS to deduct
- £140.00
- 20% of £700.00
- Pay the subbie
- £1,060.00
- Including VAT
The working
| Bill amount being paid | £1,200.00 |
|---|---|
| Less VAT (never taxed under CIS) | £200.00 |
| Gross amount paid excluding VAT | £1,000.00 |
| Less cost of materials | £300.00 |
| Amount liable to deduction | £700.00 |
| CIS deducted at 20% | £140.00 |
| Net paid | £860.00 |
| Plus VAT | £200.00 |
| Net paid including VAT | £1,060.00 |
How the CIS deduction is worked out
- Start from what you're paying and take off any VAT. CIS is never taken from VAT.
- Take off what the subbie paid on the job for materials, plant hire, consumables and fuel (not for travel), and the cost of making or prefabricating them. Count what they paid, not what they charged you. Leave out the VAT if they're VAT registered; if they aren't, the VAT counts as part of the cost.
- Take the subbie's rate of what's left: 20% if they're registered for CIS, 30% if they aren't or HMRC can't match them, nothing if they have gross payment status.
- Round down to the penny, as HMRC's own example statement does. That's the deduction you pay to HMRC, and the rest goes to the subbie.
Travel, fuel for travelling, meals and accommodation don't come off. They stay in the amount the rate is taken from.
Net to gross runs the same sum backwards. When two grosses round to the same net, it gives the larger.
Work this out for every payment, then file it
0s and 1s does this sum on every payment you record, keeps the working, and files the month's CIS300 with your Gateway login. The return is due by the 19th: CIS deadlines.
Related
- Verify a subcontractor
When to verify, what you need and the three rates
- CIS deadlines
Return by the 19th, payment by the 22nd if paid electronically