CIS on invoices
CIS on invoices — what a UK builder or subcontractor actually puts on the sheet
You are subcontracting under the Construction Industry Scheme. The contractor will deduct tax from your labour before they pay you. Your invoice has to show that split clearly — gross labour, materials, the deduction, and the net due.
Get the lines wrong and you chase money that was never coming, or you understate materials and lose cash you should have kept.
QuoteCo can print the sheet with labour and materials tagged and the CIS deduction on the labour only. We are not HMRC and this is not tax advice. Confirm the figures with your contractor and your accountant. GOV.UK — Construction Industry Scheme.
When CIS applies (and when it does not)
CIS is for construction work paid by a contractor to a subcontractor. Side-return first-fix for a main contractor on a Leeds street — often yes. A private homeowner paying you direct for a kitchen fit — usually no.
If you are not under CIS, do not invent a deduction to look “proper”. Leave it off. If you are under CIS, do not hide it in a single lump-sum line called “works”.
You still need a normal UK invoice: trading name and address, theirs, number, date, description, amount. VAT rules sit on top if you are registered — see our VAT on quotes notes and GOV.UK VAT invoices. CIS and VAT are different systems. Do not mash them into one mystery percentage.
Labour vs materials — split the lines
CIS is deducted from labour, not from materials you bought in.
Tag every line. Labour: first-fix carpentry, plastering day rate, your hours on site. Materials: timber, plasterboard, fixings at cost or as agreed. If a line mixes both, split it before you send the sheet.
Example: side-return, Bradford. Three days labour at your day rate = labour. Steel and block you ordered = materials. Skip hire you paid for = usually materials or a separate reimbursable — agree it in writing with the contractor before you invoice.
Wrong: one line “side return complete — £4,800”. Right: labour lines, materials lines, then the CIS math on the labour only.
20% or 30% — which rate goes on the invoice
Registered for CIS: deduction is usually 20% of the labour. Not registered: usually 30%. The contractor deducts it when they pay you. Your invoice should match the rate they are using.
Do not guess. Ask the contractor which rate they hold you at. Put that rate on the sheet so the net due matches what will land in your account.
If you are VAT-registered as well, VAT is calculated on the taxable supply under the usual rules — it is not “CIS minus VAT” by folk wisdom. Ask your accountant how the two sit on the same job. QuoteCo can show 20% VAT as its own line and CIS as its own deduction; we do not file your return.
What the sheet should show
A clear CIS invoice for a sole-trader builder typically shows:
- Your trading name, address, and UTR if you put it on invoices
- Contractor / site details
- Invoice number and date
- Line items tagged labour or materials, with quantity and rate
- Gross labour subtotal
- Materials subtotal
- CIS deduction (20% or 30% of labour)
- Net amount due after CIS
- VAT line if you are registered and it applies
- Your bank details or your own pay link — they pay you
The customer (or contractor) should see what was deducted and why. Ambiguous totals are how payment arguments start on a Friday.
Estimate first, invoice when the work is done
Price the job on site as an estimate with its own EST number. Split labour and materials early so nobody is surprised later. When the work is signed off, raise a numbered invoice. Two documents. Two numbers. Do not write “please pay” on the quote and call it done.
Print or PDF on your phone before you leave the drive. Free, no account needed. Your sort code or pay link on the sheet. QuoteCo never takes, holds or processes the money.
Not a diary. Not a job board. Not Making Tax Digital. Not certification. It is the sheet.
Questions
Do I need CIS on every builder invoice? No. Only when you are subcontracting under the Construction Industry Scheme. Private domestic clients paying you direct are usually outside CIS. Confirm with your contractor/accountant.
Is CIS taken from materials? No. Deduction is from labour. Split the lines.
Is 20% or 30% automatic? It depends whether you are registered for CIS. Confirm the rate your contractor holds you at. Do not invent a rate.
Does QuoteCo pay me or hold the deduction? No. We print the document. The contractor deducts CIS when they pay you. Your client or contractor pays your account — QuoteCo takes no cut.
Do I need an account to make the invoice? No. Open the builder, type the job, print or save a PDF.