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How to Calculate CIS invoices

Here is an example of a CIS invoice including VAT and Materials

Column Amount Comment / Description
Labour £300.00 Labour only element
Materials £75.00 Materials only element
VAT £75.00 20% Calculated on the total Labour & Materials
CIS £60.00 20% calculated on the Labour only (This could be 30% pending verification of each individual subcontractor)
TOTAL PAYABLE to the subcontractor is Labour + Materials + Vat – CIS = £390.00

A lot of people make the error of deducting the CIS then adding Vat this is false declaration and you would be fined if inspected.

Are you having trouble to manaually calculating VAT?, why not try our VAT Calculator

To learn more about the Construction industry Scheme take a look at the Construction Industry Scheme Guide on the HMRC website

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