A CIS-compliant invoice template that separates labour from materials, calculates the CIS deduction, and shows the net payment. Built for subcontractors working under the Construction Industry Scheme.
Every invoice in United Kingdom should include these fields to be HMRC-compliant:
The Construction Industry Scheme requires contractors to deduct tax from payments to subcontractors and pay it directly to HMRC. As a subcontractor, your invoice needs to clearly separate labour from materials because CIS deductions only apply to the labour portion. If you're registered with CIS, the deduction rate is 20%. If you're not registered, it's 30%. Materials, plant hire, and equipment are exempt from CIS deductions.
CIS deductions are advance payments of your tax liability. When you file your Self Assessment tax return, the CIS deductions are offset against your income tax bill. If you've had more deducted than you owe, you'll get a refund. Keep accurate records of all CIS deductions — your payment and deduction statements from contractors are essential evidence.
If you're a subcontractor in the construction industry, you should register. Without registration, contractors must deduct 30% instead of 20% from your labour payments.
No. Only the labour portion of your invoice is subject to CIS deduction. Materials, equipment hire, and VAT are all exempt. This is why separating labour and materials on your invoice is essential.
A Unique Taxpayer Reference is a 10-digit number issued by HMRC when you register for Self Assessment. You need it for CIS registration and it should appear on your invoices.
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