What will CIS take off this invoice?

The deduction comes off your labour. Not off the bill, not off the materials, and never off the VAT. Put your invoice in and we will show you both numbers - the one you were expecting and the one that is actually right.

Nothing is sent anywhere No email needed Works for the reverse charge too
Your time, and the time of anyone working for you. This is the only figure the deduction is worked on, so it is the one worth splitting out properly on the invoice itself.
£
What you bought and are charging on - timber, cable, plant you hired without an operator. Nothing here is deducted from, which is why it belongs on its own line.
£
The contractor verifies you with HMRC before they pay you, and what comes back decides the rate. If you have never been told, say so - we will show you all three rather than guess.
We start at the standard rate. It changes what you invoice and what you are paid - it never changes the deduction, and box 4 is here so you can watch that be true.
%
The invoice you are sending£0
They will keep back
—
Fill the invoice in and we will work it out.
  • Labour£0
  • Materials£0
  • Net of the invoice£0
  • VAT£0
  • Invoice total£0
  • The CIS deduction is worked on£0
  • Deducted and sent to HMRC for you£0
  • Lands in your bank£0
Invoice it properly next time Get my website report

The number you were expecting, and the number that is right

Almost everybody works the deduction out on the whole bill. It is worked on the labour. Here is your own invoice done both ways, so you can see which of the two figures in your head is the wrong one.

What most people expect
£0

The rate taken off the whole invoice, VAT and all.

What is actually deducted
£0

The rate taken off the labour only.

What each status would cost you on this invoice

Your own figures, run three times. The gap between the middle row and the bottom one is what being unverified is worth - it is the cheapest money on this page to go and fix.

    The sum, written out

    There is nothing clever in it. What makes it go wrong is that two of the four lines on your invoice are not in it at all.

    In four steps

    • Split the invoiceLabour on one line, materials on another. If they are one line, the contractor has no way to work the deduction out correctly and will usually deduct on more of it than they should. This is the step that costs people money, and it happens before anyone does any arithmetic.
    • Take the labour onlyThat is the CIS base. Materials are not in it. VAT is not in it. Plant you hired with an operator is generally not in it either, though that one has conditions and is worth asking your accountant about rather than reading off a web page.
    • Apply your rateNothing if you hold gross payment status, 20% if you are registered and HMRC matched you, 30% if you are not registered or they could not. The contractor does not choose it - the verification does.
    • That money is not lostThe contractor pays it to HMRC in your name, against your tax and National Insurance. You claim it back on your return, and it is why keeping every payment and deduction statement matters. It is a payment on account, not a fee.

    Where this rule comes from, and where our starting numbers do not. The deduction rule - labour only, materials out, VAT out, three rates - is HMRC's, and it is the same rule this house wrote down in its own research on 14 August 2026 before any of this was built. The ours to start figure on this page is the VAT rate, and it is only the standard rate because most invoices carry it; change it, or tick the reverse charge, and watch the deduction not move. The labour and materials boxes are yours and we have not guessed at them.

    This is guidance, not tax advice. It answers one question - what the deduction on this invoice comes to - and it cannot know whether you should be registered for gross payment status, how plant and travel on your particular job should be split, or what your accountant would say about any of it. If the number here is very different from what a contractor has actually deducted from you, that is a conversation to have with them and with your accountant, not a reason to send a different invoice.

    What this tool is not

    BuzzozoHub does not do CIS. Not yet, and this page is not a claim that it does. Our CRM knows where a payment to a subcontractor is reported - it is box 18 on an SA103F return, Payments to subcontractors (CIS), and that box is in the product today - but nothing in it works out a deduction for you. This calculator is a free tool that stands on its own, and we would rather say that plainly than let a page imply a feature we have not built.

    What the CRM does do is the step before the arithmetic: quotes and invoices that keep labour and materials on separate lines, so that when a contractor works your deduction out they are working it out on the right number. That is the half that costs real money, and it is the half that is nothing to do with a calculator.

    While you are here: what is your website costing you?

    Tell us your website and we audit it the way Google and the new AI search engines see it: speed, mobile, findability, AI-readability. Every finding says what it is, how we fix it, and what that costs. Built by our engine, read by you in five minutes.

    Automated checks of your public homepage only. No login, nothing changed, no sales call unless you ask for one.

    Split the labour out before you send it.

    Fourteen days of the whole system, free. Quotes and invoices that keep labour and materials apart by default, so the deduction is worked on the right number before anybody argues about it - and every payment and deduction statement filed where you can find it in April.

    Start your free 14-day trial Ask us on WhatsApp

    No card needed. UK based, real people, and nothing on this page was sent anywhere. Or call 020 3282 5353.