Stick your labour and materials in, pick your rate, and see what the contractor should actually pay you. Handles the VAT and reverse charge properly. Free, nothing to sign up to.
Materials look higher than the whole invoice — check the numbers.
Invoicing a VAT-registered contractor for CIS work? The reverse charge normally applies — you don't add VAT, they sort it their end. Invoicing a homeowner or whoever owns the building? Charge VAT as normal.
| Labour | £0.00 |
| Materials & direct costs | £0.00 |
| Invoice total | £0.00 |
| CIS deduction (20% of labour) | −£0.00 |
That deduction isn't money gone. It's tax paid up front. Sole traders get it back through Self Assessment; ltd companies offset it through payroll.
Sole trader? See roughly what you'll get back →Want that deduction back? £69 a month gets every statement logged as it lands and the refund claimed in April. First month's free on Solo and Growth, no card, nothing to cancel.
WhatsApp me — I'll reply today Or just give us a ringThe contractor starts with your invoice total, takes off any VAT and the materials you paid for yourself (plus plant hire, consumables and fuel used on the job, not travel), then applies your CIS rate to what's left. This is why splitting labour and materials properly on your invoice matters. Lump it all in as labour and HMRC take a bigger cut than they should.
20% if you're registered, 30% if you're not (or the contractor can't verify you), 0% if you've got gross payment status. On 30%? Sort your registration. It's the easiest money you'll make this month.
Yes, but only materials you actually paid for yourself, and the contractor can ask for proof. Keep your receipts. Plant hire, consumables and fuel used on the job (not getting to it) count too.
No. VAT comes out before the deduction is worked out. And if the reverse charge applies, which it usually does between VAT-registered subbies and contractors on CIS work, there's no VAT on your invoice at all. The contractor deals with it.
Since March 2021, most VAT-registered businesses doing construction work for other VAT-registered businesses under CIS don't charge VAT. The customer accounts for it on their own VAT return instead. Your invoice has to say the reverse charge applies. Working for an end user, like a homeowner or the business that owns the building? Charge VAT as normal.
Deductions are tax and National Insurance paid up front. Sole traders offset them against the Self Assessment bill, and plenty end up with a refund. Ltd companies offset them against PAYE through payroll and claim back anything left after the tax year ends. Overpaying every year? Something in your setup wants looking at.