Construction Industry Scheme
CIS deductions, tracked without trying
Forward each CIS statement to SubReady on WhatsApp and your deductions, gross pay and materials are read and recorded — so year end is a refund calculation, not an archaeology dig.
CIS in one minute
How the scheme works
Your contractor deducts tax from the labour part of every payment and sends it to HMRC on your behalf. Those deductions are yours — set against your real tax bill at year end.
- 20% deducted if you're CIS-registered — 30% if you're not
- Deductions apply to labour only, never materials
- Contractors must give you a CIS statement each month
- Deductions offset your tax — refunds are common
- Gross payment status removes deductions entirely
Read & recorded automatically
Building towards your refund
Built for CIS from day one
What SubReady does with your CIS
Statements read for you
Forward the PDF or photo of a CIS statement and the gross, materials and deduction figures are extracted and stored against the right contractor and month.
Deductions at your real rate
20%, 30% or gross — SubReady tracks deductions at your actual status, across every contractor and job, all tax year.
CIS-correct invoices
The invoice builder splits labour and materials and shows the CIS deduction and the net you’ll actually be paid — so there are no surprises when the payment lands.
Refund-ready records
Every recorded expense reduces your taxable profit — and with deductions tracked all year, your accountant can see your likely refund at a glance.
Accountant handover
One tap exports your CIS statements, income and expenses as an accountant-ready pack — or give your accountant read-only access all year.
All through WhatsApp
No app to learn. If you can send a photo, your CIS records keep themselves.
CIS FAQ
Common CIS questions
CIS is HMRC's scheme for construction work. Contractors deduct money from a subcontractor's payments (usually 20%) and pass it to HMRC as an advance payment towards the subcontractor's tax and National Insurance. At year end, those deductions are set against your actual tax bill — which is why many subcontractors are due a refund.
20% is the standard rate for subcontractors registered for CIS. 30% applies if you're not registered (register — it's free and saves you 10% on every payment). Gross payment status means no deductions at all — you pay your tax through your return instead, and you must meet HMRC's turnover and compliance tests to qualify.
No. CIS deductions apply to the labour part of your invoice only. Materials you paid for are excluded — which is why your invoices should always split labour and materials, and why SubReady's invoice builder does that split for you.
Because 20% is deducted from your gross labour income all year — before your Personal Allowance or expenses are taken into account. When your actual tax is worked out on your profit (income minus expenses), the deductions often add up to more than you owe. Good expense records directly increase the refund.
Your CIS statements from each contractor (they must give you one for every month they deduct), your income, and your business expenses. SubReady stores each CIS statement you forward on WhatsApp and reads the gross, materials and deduction figures automatically.
Keep reading: CIS deductions explained, how to get a CIS refund, SubReady for subcontractors, for electricians, for builders, for plumbers, for accountants with CIS clients or pricing. This page is general guidance, not tax advice.
Tired of storing CIS statements?
Send them to SubReady on WhatsApp instead — deductions tracked automatically. 14 days free, no card required.
14 days free · No card required · Takes about 60 seconds