CIS Take-Home Pay 2026-27
Construction Industry Scheme (CIS) subcontractor take-home pay for every daily rate. See your weekly received amount after the 20% CIS deduction, your true annual net after income tax and NI, and whether you will get a refund at year-end.
How CIS works in 2026-27
CIS deductions are advance payments toward your annual tax bill. You file a Self Assessment return and HMRC calculates whether you have overpaid (refund) or underpaid (balance owed). Most subcontractors at standard rates receive a refund.
CIS take-home by daily rate, 2026-27
| Daily rate | Annual gross | Weekly received | CIS deducted/yr | True annual net | Year-end balance |
|---|---|---|---|---|---|
| £100/day | £24,000 | £400 | £4,800 | £21,028 | +£1,828 refund |
| £120/day | £28,800 | £480 | £5,760 | £24,580 | +£1,540 refund |
| £140/day | £33,600 | £560 | £6,720 | £28,132 | +£1,252 refund |
| £150/day | £36,000 | £600 | £7,200 | £29,908 | +£1,108 refund |
| £160/day | £38,400 | £640 | £7,680 | £31,684 | +£964 refund |
| £175/day | £42,000 | £700 | £8,400 | £34,348 | +£748 refund |
| £200/day | £48,000 | £800 | £9,600 | £38,788 | +£388 refund |
| £225/day | £54,000 | £900 | £10,800 | £42,631 | £569 owed |
| £250/day | £60,000 | £1,000 | £12,000 | £46,111 | £1,889 owed |
| £275/day | £66,000 | £1,100 | £13,200 | £49,591 | £3,209 owed |
| £300/day | £72,000 | £1,200 | £14,400 | £53,071 | £4,529 owed |
| £325/day | £78,000 | £1,300 | £15,600 | £56,551 | £5,849 owed |
| £350/day | £84,000 | £1,400 | £16,800 | £60,031 | £7,169 owed |
| £400/day | £96,000 | £1,600 | £19,200 | £66,991 | £9,809 owed |
| £450/day | £108,000 | £1,800 | £21,600 | £72,351 | £14,049 owed |
| £500/day | £120,000 | £2,000 | £24,000 | £76,911 | £19,089 owed |
| £550/day | £132,000 | £2,200 | £26,400 | £82,500 | £23,100 owed |
| £600/day | £144,000 | £2,400 | £28,800 | £88,860 | £26,340 owed |
| £700/day | £168,000 | £2,800 | £33,600 | £101,580 | £32,820 owed |
| £800/day | £192,000 | £3,200 | £38,400 | £114,300 | £39,300 owed |
Weekly received = daily rate × 5 × 0.80 (after 20% CIS). True annual net = gross minus income tax and Class 4 NI (Class 2 is treated as paid above the £7,105 Small Profits Threshold). 240 working days assumed (48 weeks × 5 days).
Frequently asked questions
What is CIS (Construction Industry Scheme)?
CIS requires contractors to deduct 20% (registered) or 30% (unregistered) from labour payments to subcontractors. These deductions go to HMRC as advance tax payments. Materials are excluded. You settle the difference, whether a refund or top-up, through Self Assessment.
Will I get a CIS refund at year-end?
Most registered CIS subcontractors at low-to-mid daily rates get a refund, because 20% of gross labour typically exceeds the actual income tax + self-employed NI owed. The refund decreases as earnings rise and disappears around £150,000/year equivalent.
Do I pay National Insurance as a CIS subcontractor?
Yes, Class 4 NI (6% on £12,570 to £50,270, 2% above) applies to self-employed workers including CIS subcontractors and is settled via Self Assessment. You do not pay employee Class 1 NI. Class 2 NI is treated as paid if your profits are at or above £7,105 (2026-27); below that you can pay it voluntarily at £3.65 a week.
What is the difference between 20% and 30% CIS?
Registered subcontractors have 20% deducted. Unregistered subcontractors face 30%, a significant penalty that costs you money upfront even if it is refunded at year-end. Register for CIS with HMRC online for free to ensure you only have 20% deducted.
CIS subcontractor tax in 2026-27
As a CIS subcontractor, your take-home situation is more complex than a standard employed worker. Each week your contractor deducts 20% from the labour portion of your invoice and sends it to HMRC. You see this on your payment statement as a CIS deduction. But this 20% is not your final tax bill; it is an advance payment.
Your true annual tax liability depends on your income tax (based on profit, after business expenses) and Class 4 NI (6% on profits between £12,570 and £50,270, then 2% above). Class 2 NI is treated as paid once profits reach the Small Profits Threshold (£7,105 in 2026-27), so there is nothing extra to pay. Because materials, tools, and legitimate business expenses can be deducted before calculating income tax, many CIS subcontractors find their actual tax bill is lower than the 20% withheld, resulting in a refund.
The tables above show the take-home position assuming no deductible business expenses beyond the standard allowances. In practice, allowable expenses (tools, van, fuel, PPE, professional subscriptions) will reduce your income tax and increase your year-end refund.
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