Useful next calculations
Rates and sources
Construction Industry Scheme deductions on the labour element: 20% if registered, 30% if unregistered. Materials are not deducted.
| Band or 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 accepting a pay change, bonus, pension contribution or salary-sacrifice option.
- When you want a simple take-home estimate before payroll or filing.
- When you are approaching the £100,000 income level and want to see the personal allowance taper.
- When you need to convert between hourly, monthly and annual pay.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Gross subcontract payment (£) | £5,000 |
| CIS status | Registered, verified net payment (20%) |
| Materials (not deducted) (£) | £0 |
For those figures the calculator returns:
- Labour: £5,000.00
- CIS deduction: £1,000.00
- Net paid: £4,000.00
Method & assumptions
Use the payment status verified with HMRC: 20% for registered net-payment status, 30% when unverified, or 0% for verified gross-payment status. Incorporation alone does not determine the rate. Enter gross payment excluding VAT and allowable materials/costs eligible for exclusion from the deduction base; retain evidence. This estimates the contractor deduction, not the subcontractor’s final tax liability.
Common mistakes
- Entering gross income when you really want take-home pay, or vice versa.
- Ignoring pension contributions, deductions or local tax rules that change the result.
- Comparing monthly and annual figures without standardising them first.
- Overlooking National Insurance or student-loan plan differences that apply to you.
What to do next
- Check the same scenario with related pay or deduction calculators.
- Keep a copy of the assumptions so you can compare the next tax year or pay period.
- If you are self-employed, compare this result with the self-employment tax calculator.
- Check whether a small pension contribution change moves take-home pay more than you expect.
Questions people ask
No. HMRC CIS deductions apply to the labour element. Enter materials separately so they are excluded from the taxable amount.