Example result based on the prefilled values.
| Result | Value |
|---|---|
| Labour | £5,000.00 |
| CIS deduction | £1,000.00 |
| Net paid | £4,000.00 |
Continue your plan
Useful next calculations
Rates & sources
Construction Industry Scheme deductions on the labour element: 20% if registered, 30% if unregistered. Materials are not deducted.
| Band / figure | Rate |
|---|---|
| Registered rate | 20% |
| Unregistered rate | 30% |
| Materials | excluded |
Source: GOV.UK — CIS for subcontractors — check the linked guidance and any live quote before acting.
When to use this calculator
- Before pricing a job, setting margin targets, or reviewing hiring costs.
- When you want to test sensitivity around volume, VAT, markup, or overhead changes.
- When you need a practical estimate before committing to a budget or proposal.
- When you are modelling break-even volume and want to see how it shifts as overheads or prices change.
- When you are preparing a quote and need to verify that the margin holds after materials, labour, and VAT are accounted for.
A realistic UK planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
| Input | Value |
|---|---|
| Gross subcontract payment (£) | £35,000 |
| CIS status | Registered subcontractor (20%) |
| Materials (not deducted) (£) | Enter your own figure |
After entering these figures, review labour, cis deduction and net paid together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Labour
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
CIS deduction
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Net paid
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Method & assumptionsAuthoritative sources
Under the Construction Industry Scheme, a contractor deducts tax from a subcontractor’s labour element and pays it to HMRC. Registered subcontractors and most companies are deducted at 20%. Unregistered subcontractors are deducted at 30%. Materials invoiced separately are not deducted.
This is a payment-on-account of the subcontractor’s tax, not a final bill. Verify registration status in the CIS online service. Source: GOV.UK CIS for subcontractors.
Common mistakes
- !Using optimistic assumptions without testing a more cautious scenario as well.
- !Comparing outputs from different tools without checking that the inputs match.
- !Treating the result as a final quote instead of a planning estimate.
- !Forgetting to include employer National Insurance contributions when modelling the true cost of a new hire.
- !Using revenue figures in place of gross profit when calculating margin percentage, which produces a misleadingly high result.
What to do next
- Try at least one more scenario with a lower price or higher cost so you can see the margin floor.
- Use the related calculators below to cross-check VAT, payroll, or break-even figures from another angle.
- Open one of the linked guides if you need more context before you finalise a quote or budget.
- If the margin is tighter than expected, identify which single input has the biggest impact and focus any negotiation there first.
- Keep a record of the assumptions behind this estimate so you can revisit and update it when costs or volumes change.
Frequently asked
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