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CIS Tax Deduction

Equations

The CIS Deduction Calculator uses a series of equations to calculate the Construction Industry Scheme (CIS) deductions and the net payment to subcontractors. Here's a detailed breakdown of the equations and logic:


Total Charge Calculation

Total Charge = Labour Charge + Materials Charge


CIS Rate Determination:

The CIS rate is determined based on the subcontractor's verification status with HMRC


CIS Rate=0.20

If the subcontractor is verified with HMRC, the CIS rate is 20%


CIS Rate=0.30

If the subcontractor is not verified with HMRC, the CIS rate is 30% 


CIS Deduction Calculation

CIS Deduction = Labour Charge × CIS Rate


Total Payable Calculation

Total Payable = Total Charge − CIS Deduction 

What is a

CIS Tax Deduction Calculator

A CIS Deduction Calculator is a tool used to calculate the amount of money that should be deducted from payments to subcontractors under the Construction Industry Scheme (CIS) in the UK. 


The CIS is a set of rules set up by HM Revenue and Customs (HMRC) to regulate payments between contractors and subcontractors in the construction industry.

How to use the 

CIS Tax Deduction Calculator

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