What will I be paid after CIS?
Put in the labour and the materials and see what your invoice should say: the VAT, the CIS a contractor will hold back, and the balance you will actually be paid.
Your invoice, in figures
| Labour | £1,000.00 |
| Materials | £250.00 |
| Subtotal | £1,250.00 |
| No VAT (not VAT-registered) | £0.00 |
| Invoice total | £1,250.00 |
| What you are paid | |
| CIS held back (20% of labour) | −£200.00 |
| Already paid to you | −£0.00 |
| Balance to be paid | |
The contractor pays the £200.00 to HMRC for you, and it counts towards your tax and National Insurance.
How it is worked out
CIS comes off the labour only. A contractor paying you under the Construction Industry Scheme holds back 20% if you are registered for CIS, 30% if you are not, and nothing if you have gross payment status. They take off the VAT and what you paid for materials, plant hire, consumables and fuel (except for travel) first, and the rate applies to what is left — the labour. The money is not lost: they pay it to HMRC, and it counts towards your tax and National Insurance.
Working for a homeowner? CIS does not apply. Choose “A homeowner or private customer” and nothing is held back.
VAT goes on the labour and the materials. If you are VAT-registered, it is added at your rate to the whole subtotal. If you are not, the invoice carries no VAT — say so on it, so nobody asks.
The reverse charge. When you and the contractor are both VAT-registered and the job is reported under CIS, you usually do not add the VAT to what you charge. The invoice still shows the VAT (or its rate) and a note such as “Reverse charge: customer to pay the VAT to HMRC”, and the contractor accounts for it. It does not apply to a homeowner, to zero-rated work, or when the contractor has told you in writing that they are an end user.
Checked against GOV.UK on 6 October 2026: CIS deductions, CIS for subcontractors and the VAT domestic reverse charge. This is the arithmetic, not tax advice — ask an accountant about your own case.
Let the invoice do the sum
In Speak to Quote an invoice takes the CIS deduction and any deposit already received off the total for you, and prints the balance due on the copy your customer gets — with your VAT number and bank details on it. Say the job, check the lines, turn the quote into the invoice.