CIS deductions, worked out for you
Under the Construction Industry Scheme, the deduction comes off labour — not materials, and not the VAT. Getting that split right by hand on every invoice is where mistakes and awkward conversations with contractors come from. Mark each line as labour or materials once, and the arithmetic stops being your problem.
How the deduction is applied
1. Set your rate once
Enter your CIS deduction rate in Settings — 20% if you're registered with HMRC, 30% if not, or 0% for gross payment status. It's applied from then on without being asked again.
2. Flag the labour lines
Each line on a job has a labour tick. Materials, plant hire and consumables stay untouched; only what you've marked as labour is treated as liable.
3. The invoice shows the split
The deduction appears as its own line beneath the totals, so the contractor sees the gross figure, what's been withheld, and what's actually payable — no ambiguity, no recalculating at their end.
CIS and reverse charge together
Construction invoices frequently need both at once: a domestic reverse charge because you're billing another VAT-registered construction business, and a CIS deduction because the work is within the scheme. Both can be applied to the same invoice. The VAT is zeroed with the statement HMRC requires printed on the document, the deduction still comes off the labour, and the discount — if you've given one — is accounted for before either is worked out.
Questions
Does CIS come off before or after VAT?
The deduction is taken from the labour element excluding VAT. In ClickDesign Invoicing the VAT is calculated on the job, and the CIS deduction is applied to the labour lines net of VAT, then shown separately beneath the totals.
What rate should I use?
20% if you are registered with HMRC under the scheme, 30% if you are not registered, and 0% if you hold gross payment status. Your contractor verifies your status with HMRC and should tell you which applies — set that rate in Settings.
Can I invoice some jobs with CIS and others without?
Yes. The deduction only applies to lines you've marked as labour, so a materials-only invoice carries none. For work entirely outside the scheme, leave the labour flags off.
Does this file my CIS returns with HMRC?
No. ClickDesign Invoicing produces correct CIS invoices and shows what has been deducted, and exports everything to CSV or JSON for your accountant or your own records. It does not submit returns to HMRC.
More on invoicing
Invoicing software UK
Built for UK rules — VAT, CIS and reverse charge, not bolted on.
Invoicing for tradesmen
Quote on the doorstep, invoice from the van. Electricians, plumbers, builders.
VAT invoice software
Per-line VAT and domestic reverse charge with the wording HMRC expects.
Invoicing for sole traders
For one-person businesses, freelancers and contractors who bill their own work.
Quote and invoice software
One system for estimates and invoices — convert a won quote in a single click.
Free invoicing software
Five invoices free for life, no card, no trial countdown.