CIS invoices done correctly, every time
If you work as a subcontractor under the Construction Industry Scheme, your invoices need to show the gross amount, the CIS deduction, and the net payment separately. InvoiceAdept handles all the calculations automatically.
CIS deduction rates
Applied to the labour element only — not to the cost of materials.
0%
Gross payment status
Subcontractors with HMRC approval to receive payments in full without deduction.
20%
Standard rate
Registered CIS subcontractors in good standing with HMRC.
30%
Higher rate
Unregistered subcontractors, or those HMRC cannot verify.
Correct CIS deductions calculated automatically
The Construction Industry Scheme requires contractors to deduct money from subcontractor payments and pass it to HMRC. The deduction is applied only to the labour element of the invoice — not to materials. InvoiceAdept handles this split and calculation automatically, whether you're on the 20% standard rate or 30% higher rate.
- 20% standard CIS deduction for registered subcontractors
- 30% higher rate for unregistered subcontractors
- Deduction applied to labour only — not materials
- Gross, CIS deduction, and net payment shown clearly
Invoice layout that contractors expect
Contractors need to see specific information on a CIS invoice to correctly process the deduction and submit their monthly CIS returns to HMRC. InvoiceAdept produces invoices in the correct format with labour and materials broken out, the deduction amount stated, and the net payment clearly shown.
- Labour and materials shown as separate line items
- CIS deduction amount clearly stated on the invoice
- Net payment amount (what the contractor actually pays you) highlighted
- Your UTR number can be included on every invoice
Understanding CIS — a quick guide for subcontractors
If you're a subcontractor working under CIS, the contractor you work for is required by HMRC to deduct either 20% or 30% from the labour portion of your invoices before paying you. This money is sent directly to HMRC as an advance payment against your Self Assessment tax bill. At the end of the year, HMRC reconciles what you've paid in advance against what you actually owe.
- You must be registered with HMRC as a CIS subcontractor
- Your UTR (Unique Taxpayer Reference) identifies you in the scheme
- Keep all CIS invoices — you'll need them for Self Assessment
- You can verify deductions against your HMRC account online
Gross payment status — invoice without deductions
If you have a strong tax compliance record, you can apply to HMRC for gross payment status under CIS. This means contractors pay you in full without making any deductions. InvoiceAdept supports both modes — you can switch your CIS status in your settings and all future invoices will reflect this.
- Toggle between standard CIS and gross payment status easily
- Gross status invoices show the full amount without deductions
- Your gross payment certificate details can be included on invoices
- Contractors can verify your status directly with HMRC
Frequently asked questions
Do I need to register for CIS as a subcontractor?
Yes. If you work in the construction industry as a subcontractor, you should register with HMRC as a CIS subcontractor. If you don't register, contractors will deduct 30% from your invoices instead of the standard 20%. Registration is free and can be done online through the HMRC website.
Is CIS deducted from my materials as well as labour?
No. CIS deductions only apply to the labour element of your invoice. If you supply materials as part of the job, these should be listed separately on your invoice and no CIS deduction is made on the materials cost. This is why it is important to clearly separate labour and materials on CIS invoices.
How do I claim back CIS deductions that have been taken?
CIS deductions are treated as advance payments towards your Self Assessment income tax and National Insurance bill. When you complete your annual Self Assessment tax return, you declare the CIS deductions that were made on your behalf and HMRC offsets them against your total tax bill. If more was deducted than you owe, HMRC will refund the difference.
What is a CIS monthly statement and do I need one?
Contractors are required by HMRC to give each subcontractor a statement showing the gross payment made, the deduction taken, and the net amount paid, for each monthly CIS return period. InvoiceAdept's invoice records provide the underlying data — your contractor should issue the formal monthly CIS statements.
Invoice correctly under CIS from day one
Stop worrying about whether your CIS invoices are right. InvoiceAdept handles the calculations so your contractors are happy and HMRC is satisfied.
Start for freeNo credit card required. InvoiceAdept is not a tax adviser — always consult HMRC or a qualified accountant for specific CIS guidance.