CIS Calculator 2025/26
Calculate CIS deductions instantly for the 2025/26 tax year.
Account for materials, travel, fuel, subsistence and plant hire correctly.
Built for contractors and subcontractors following the latest HMRC CIS rules.
Worker Details
CIS Deduction Rates (2025-26)
Registered: 20% deduction | Unregistered: 30% deduction | Gross Payment Status: 0% deduction (must apply to HMRC and meet specific criteria)
Payment Details
💡 Payment Components Guide
Labour/Services: Main payment for work performed (always subject to CIS)
Materials: CIS-exempt if genuinely purchased by subcontractor
Travel/Fuel/Subsistence: Subject to CIS per HMRC CISR15080
Plant Hire: Can be split if hired from third party (see below)
Materials CIS Treatment
✓ Materials are CIS-Exempt
HMRC Rule (FA 2004 s61, CISR15060):
• Materials actually purchased by the subcontractor are exempt from CIS
• Must represent the direct cost paid by the subcontractor
• Must be physically incorporated into the construction work
• Contractors may request proof of purchase invoices
• VAT-exclusive cost where subcontractor is VAT registered
Plant & Equipment Hire Options
⚠️ CRITICAL: Plant Hire Must Be From Third Party
HMRC Rule (CISR14260, CISR15090):
• Plant hire costs can ONLY be treated as "materials" (CIS-exempt) if the subcontractor has actually HIRED the plant from a third party
• OWNED PLANT CANNOT BE DEDUCTED - this is a major HMRC compliance issue
• Plant on hire purchase or long-term lease also cannot be deducted
• Contractors may request proof of hire invoices from third parties
• Fuel for plant operation can be treated as materials (if hired)
• HMRC frequently challenges scaffolders, crane operators claiming owned equipment
Plant & Equipment CIS Rules
• Self-drive hire (no operator): Outside scope of CIS entirely
• Operated plant (with operator): Full amount subject to CIS, but hire cost can be treated as materials
• Splitting required: Reasonable apportionment between equipment and labour
• Evidence required: Keep third-party hire invoices to support materials claim
Additional Deductions & Options
Important CIS Rules (HMRC Guidance)
• CIS deductions apply to labour costs - materials can be deducted if genuinely purchased
• VAT reverse charge applies to most construction services from 1 March 2021
• Contractors must verify subcontractors with HMRC before first payment
• Monthly returns (CIS300) must be filed by 19th of following month
• Keep detailed records separating labour from materials/plant/expenses
• Proof required: Contractors can request evidence for materials and plant hire
• Contractor liability: Contractors are liable for under-deducted CIS amounts
HMRC Manual References: CISR15060 (materials), CISR15080 (travel), CISR14260 (plant)
Calculation Results
Detailed Breakdown
| Description | Amount (£) | Rate |
|---|
Payment Schedule Considerations
Compliance Reminder - HMRC Requirements
Contractors must:
• Verify subcontractors with HMRC before first payment
• File CIS300 monthly returns by 19th of following month
• Pay CIS deductions to HMRC by 22nd of each month
• Provide payment statements to subcontractors within 14 days
• Request evidence for materials and plant hire claims
• Keep records for at least 3 years from end of tax year
• Report ALL payments, even if nil CIS deduction applies
Key HMRC Compliance Points:
• Contractors are liable for under-deducted CIS (even if subcontractor's error)
• Travel/fuel/subsistence are subject to CIS per HMRC CISR15080
• Plant hire must be from third party with proof (HMRC CISR14260)
• Materials must be direct costs actually incurred (HMRC CISR15060)
• When in doubt, include amounts in CIS calculation