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£350/day CIS Take-Home Pay 2025-26

Weekly gross: £1,750 · Annual gross: £84,000 · Based on 240 working days

Weekly received
£1,400
after 20% CIS
True annual net
£59,852
after tax + NI
Monthly take-home
£4,988
Year-end balance
£7,348 underpaid

How your CIS deduction works

Your contractor deducts 20% from the labour portion of your payment each week (£350/week) and sends it to HMRC. You receive £1,400/week. At year-end you file a Self Assessment return. HMRC compares the £16,800 deducted against your true tax bill. Based on these figures you would owe approximately £7,348 via Self Assessment.

Full CIS tax breakdown, £350/day

Item Annual Monthly Weekly
Gross earnings (labour) £84,000 £7,000 £1,750
CIS deducted at source (20%) -£16,800 -£1,400 -£323
Received weekly £67,200 £5,600 £1,400
Income Tax (true liability) £21,032 £1,753 £404
Class 2 NI (self-employed) £179 £15 £3
Class 4 NI (self-employed) £2,937 £245 £56
True annual net take-home £59,852 £4,988 £1,151
Year-end underpayment (est.) £7,348

Effective tax rate: 28.75% of gross. Figures assume no deductible business expenses. Allowable expenses (tools, van, fuel, PPE) will reduce income tax and increase any refund.

CIS take-home on £350/day in 2025-26

On £350/day, your annual gross is £84,000 (assuming 240 working days). Each week your contractor deducts 20% CIS, which amounts to £350/week, leaving you with £1,400/week in your account.

But the 20% CIS is only an advance tax payment. Your actual annual tax liability is £21,032 income tax plus £3,116 in self-employed NI (Class 2 and 4), totalling £24,148. Over the year HMRC receives £16,800 from your CIS deductions, so at year-end you would owe approximately £7,348.

Your true annual take-home, after settling all taxes, is £59,852 (£4,988/month, £1,151/week), giving an effective tax rate of 28.75%. Remember this assumes no business expenses; in reality, tools, vehicle costs, and PPE can significantly reduce your income tax bill.

Frequently asked questions

How much does a £350/day CIS subcontractor take home?

A CIS subcontractor earning £350/day (£84,000/year gross) receives £1,400/week at source after the 20% CIS deduction. The true annual net after income tax, Class 2 NI, and Class 4 NI is £59,852 (£4,988/month).

Will I get a CIS tax refund on £350/day?

On £350/day (£84,000/year), your true tax liability (£24,148) slightly exceeds the 20% CIS deducted (£16,800). You would owe approximately £7,348 via Self Assessment.

What Class 4 NI does a £350/day CIS worker pay?

On £84,000/year, Class 4 NI is £2,937/year (6% on earnings £12,570 to £50,270, 2% above). Class 2 NI is £179/year (flat rate for self-employed earning above £12,570). Total self-employed NI: £3,116/year.

What is the effective tax rate for a £350/day CIS subcontractor?

On £84,000/year, total income tax (£21,032) plus self-employed NI (£3,116) gives an effective rate of 28.75% of gross earnings. This is your actual tax burden. The 20% CIS deduction is just an advance payment against this.

Do I need to file a Self Assessment tax return as a CIS subcontractor?

All CIS subcontractors must file a Self Assessment tax return each year by 31 January. This is how HMRC reconciles the 20% CIS deductions made by your contractor against your actual tax liability. On £350/day (£84,000/year gross), you would report your income, claim allowable business expenses (tools, vehicle, PPE, insurance), and either receive a refund or pay any shortfall. Failure to file results in automatic penalties starting at £100.

What business expenses can a £350/day CIS worker claim?

CIS subcontractors can deduct allowable business expenses from their taxable income before Self Assessment, reducing their income tax bill. Common deductible expenses include: tools and equipment (or capital allowances for larger items), vehicle costs (fuel, insurance, servicing, or the flat-rate mileage alternative of 45p/mile for the first 10,000 miles), PPE and safety equipment, public liability insurance, professional subscriptions, and a proportion of phone costs. On £84,000/year, every £1,000 of legitimate expenses reduces income tax by £200 at basic rate, increasing your true annual net beyond £59,852.

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All CIS daily rates Self-Employed Tax Income Tax 2025-26 National Insurance