CIS invoice template with the deduction done for you
Most free invoice tools cannot do CIS at all, and the ones that try usually deduct from the wrong number. This one takes the deduction from the labour element only, before VAT, at 20%, 30% or 0% for gross payment status, and shows your contractor both the total and the amount payable now.
Three steps, about two minutes
Add your details. Your business, your client, and what you did. Drop in a logo if you have one and pick a colour that looks like you.
Check the preview. The invoice updates as you type, at real A4 proportions. What you see on screen is exactly what comes out of the PDF.
Get it by email. Tell us where to send it and a print-ready PDF lands in your inbox, ready to forward to your customer, print, or drop in your accounts folder.
How a CIS deduction is actually calculated
Under the Construction Industry Scheme the contractor withholds tax from your payment and pays it to HMRC on your behalf. The critical detail is what it is withheld from: the labour element only, never materials, and always on the amount before VAT.
So an invoice of 800 pounds labour plus 400 pounds materials, at the 20% registered rate, has 160 pounds withheld, not 240. Getting that wrong in the contractor's favour is one of the most expensive habits a subcontractor can have, and it is surprisingly common.
Which rate applies to you
Registered subcontractors are deducted at 20%. Subcontractors the contractor cannot verify with HMRC are deducted at 30%, which is the incentive to register. Subcontractors with gross payment status are deducted at 0% and settle their own tax later.
Your contractor verifies your status with HMRC, so the rate is theirs to apply rather than yours to choose. Setting it correctly on the invoice simply means the figure they pay matches the figure you expected.
CIS and the VAT reverse charge together
Since March 2021, most construction services between VAT-registered businesses fall under the domestic reverse charge. The customer accounts for the VAT rather than paying it to you, so your invoice shows £0 VAT with a note saying so.
The two rules interact: the CIS deduction is calculated on the labour element before VAT, so under the reverse charge it is calculated on the labour element as shown. Switch both on here and the invoice comes out with the deduction, the reverse charge wording, and the amount payable all consistent.
What your contractor needs to see
A CIS invoice has to make the split obvious. Show labour and materials on separate lines, show the gross total, show the deduction as its own line, and show the net amount payable. A contractor who has to work out your split themselves will either ring you or pay you late.
Keep your monthly CIS statements from the contractor. They are your evidence of tax already paid when you file your Self Assessment or claim a repayment.
Frequently asked questions
Is CIS deducted from materials?
No, never. The deduction applies to the labour element only. Materials, plant hire and certain other costs are excluded. This generator only ever deducts from lines you have marked as labour, which is why the labour and materials split matters.
Is CIS calculated before or after VAT?
Before VAT, always. The deduction is taken from the labour element excluding VAT. If your prices include VAT, this generator strips the VAT out before working out the deduction so the figure is correct either way.
What is the difference between the 20% and 30% CIS rate?
20% applies to subcontractors registered with HMRC under the scheme and successfully verified by the contractor. 30% applies where the subcontractor cannot be verified, usually because they have not registered. Gross payment status means 0% is deducted and you settle the tax yourself.
Can I use CIS and the VAT reverse charge on the same invoice?
Yes, and for construction work between VAT-registered businesses you often have to. Turn both on and the invoice shows £0 VAT with the reverse charge wording, and the CIS deduction calculated on the labour element as shown.
Is the invoice generator really free?
Yes. Build as many invoices as you like and we email you every one as a PDF. There is no signup, no trial and no card required. The only thing on the finished invoice is a small 'Made with Zappy' line in the footer.
Is my data stored anywhere?
The invoice is built in your browser, and your last one is kept in your browser's local storage so a refresh does not lose it. Start again clears it. When you ask us to email the PDF we keep that invoice and your email address so we can send it and so you can pick it up again later. We never sell it on, and marketing emails are a separate tick box you can opt out of at any time.
Create a free account