CIS Unregistered Subcontractor Take-Home 2025-26
Take-home pay for unregistered CIS subcontractors at the 30% deduction rate. See the weekly amount received, the year-end refund, and exactly how much registering with HMRC would improve your cash-flow at each day rate.
30% is deducted at source for unregistered subcontractors, 10 percentage points more than the 20% registered rate. This creates a larger year-end refund but ties up significant cash with HMRC for months. Registering is free and takes 1-2 weeks. Compare with registered (20%) →
CIS unregistered take-home by daily rate, 2025-26
| Daily rate | Annual gross | CIS deducted (30%) | Weekly received | Year-end refund | vs registered saving |
|---|---|---|---|---|---|
| £100/day | £24,000 | £7,200 | £350 | +£4,228 refund | £2,400/yr |
| £120/day | £28,800 | £8,640 | £420 | +£4,420 refund | £2,880/yr |
| £140/day | £33,600 | £10,080 | £490 | +£4,612 refund | £3,360/yr |
| £150/day | £36,000 | £10,800 | £525 | +£4,708 refund | £3,600/yr |
| £160/day | £38,400 | £11,520 | £560 | +£4,804 refund | £3,840/yr |
| £175/day | £42,000 | £12,600 | £613 | +£4,948 refund | £4,200/yr |
| £200/day | £48,000 | £14,400 | £700 | +£5,188 refund | £4,800/yr |
| £225/day | £54,000 | £16,200 | £788 | +£4,831 refund | £5,400/yr |
| £250/day | £60,000 | £18,000 | £875 | +£4,111 refund | £6,000/yr |
| £275/day | £66,000 | £19,800 | £962 | +£3,391 refund | £6,600/yr |
| £300/day | £72,000 | £21,600 | £1,050 | +£2,671 refund | £7,200/yr |
| £325/day | £78,000 | £23,400 | £1,138 | +£1,951 refund | £7,800/yr |
| £350/day | £84,000 | £25,200 | £1,225 | +£1,231 refund | £8,400/yr |
| £400/day | £96,000 | £28,800 | £1,400 | £209 owed | £9,600/yr |
| £450/day | £108,000 | £32,400 | £1,575 | £3,249 owed | £10,800/yr |
| £500/day | £120,000 | £36,000 | £1,750 | £7,332 owed | £12,000/yr |
| £550/day | £132,000 | £39,600 | £1,925 | £10,529 owed | £13,200/yr |
| £600/day | £144,000 | £43,200 | £2,100 | £12,569 owed | £14,400/yr |
| £700/day | £168,000 | £50,400 | £2,450 | £16,649 owed | £16,800/yr |
| £800/day | £192,000 | £57,600 | £2,800 | £20,729 owed | £19,200/yr |
Weekly received = daily rate x 5 x 0.70 (after 30% CIS). Year-end refund = 30% CIS deducted minus true income tax and self-employed NI. "vs registered saving" = cash-flow cost of not registering (the extra 10% withheld upfront). 240 working days assumed (48 weeks x 5 days).
Frequently asked questions
What is the 30% CIS deduction for unregistered subcontractors?
Unregistered subcontractors have 30% deducted from all labour payments at source. Registered subcontractors only have 20% deducted. The extra 10% is held by HMRC until you file your Self Assessment return, at which point any overpayment is refunded. The total tax bill is the same either way.
Do unregistered subcontractors pay more tax than registered ones?
No. Income tax and NI are the same. The only difference is cash-flow: 30% withheld upfront vs 20%. Unregistered workers get a bigger refund at year-end, but they wait longer for money they have already earned.
How do I register for CIS to pay 20% instead of 30%?
Register via your HMRC Government Gateway account or call 0300 200 3210. You need your UTR, National Insurance number, and business name. It is free and takes 1-2 weeks. Once verified, contractors apply the 20% rate from their next payment.
Can I claim back the 30% CIS deduction?
The overpayment is refunded through Self Assessment after the tax year ends on 5 April. File your return early. HMRC typically processes refunds within 6-8 weeks of submission. Allowable expenses (tools, van, PPE, insurance) will further increase your refund by reducing taxable income.
CIS 30% deduction: how it compares to registered
Unregistered CIS subcontractors pay the same income tax and National Insurance as registered ones. The 30% deduction rate is not a tax surcharge. It is a precautionary measure by HMRC, designed to ensure those who have not confirmed their tax status still contribute to their tax bill in advance. Because 30% of gross labour is nearly always more than the actual tax owed on those earnings, most unregistered subcontractors will receive a refund at year-end.
The real cost is cash-flow. At £250/day, for example, an unregistered subcontractor has £18,000/year withheld versus £12,000 for a registered one, an extra £6,000 sitting with HMRC. If the refund takes 9 months to arrive after the tax year ends, that money has been out of reach for up to 21 months after it was earned.
Registering costs nothing. It requires a UTR, a National Insurance number, and a Government Gateway account. Once registered and verified, contractors switch to the 20% rate on the next payment. For most subcontractors the 1-2 week delay is the only barrier.
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