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 | £76,668 | £19,332 owed |
| £550/day | £132,000 | £2,200 | £26,400 | £81,871 | £23,729 owed |
| £600/day | £144,000 | £2,400 | £28,800 | £88,231 | £26,969 owed |
| £700/day | £168,000 | £2,800 | £33,600 | £100,951 | £33,449 owed |
| £800/day | £192,000 | £3,200 | £38,400 | £113,671 | £39,929 owed |
Weekly received = daily rate × 5 × 0.80 (after 20% CIS). True annual net = gross minus income tax, Class 2 NI, and Class 4 NI. 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 2 NI (£189.80/year, flat) and Class 4 NI (6% on £12,570 to £50,270, 2% above) apply to self-employed workers including CIS subcontractors. You do not pay employee Class 1 NI. Both are settled via Self Assessment.
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), Class 2 NI (a flat £189.80/year), and Class 4 NI (6% on earnings between £12,570 and £50,270, then 2% above). 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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