Free CIS invoice template and deduction calculator for UK subcontractors
CIS taken from the right figure, reverse charge VAT worded the way HMRC asks, and the monthly statement your contractor owes you, in one workbook with a worked example.
For subcontractors, bookkeepers and contractors in UK construction who invoice or pay under CIS.
Get the template
Written by Ben Atkinson, Streamlined Analytics. Rules checked against HMRC's CIS 340 and reverse charge guidance, October 2026.
- ✓ A CIS invoice that splits labour, materials, plant and travel, takes the deduction only from the right part, and adds the reverse charge wording automatically
- ✓ A "which VAT applies?" helper: reverse charge, normal VAT or none, with the reason
- ✓ For contractors: a payment log, the monthly payment and deduction statement, and a CIS300 tie-out
- ✓ A worked example showing the most common CIS mistakes, in Excel, LibreOffice or Google Sheets, plus a Word invoice
This is a template for general information only. It is not legal, tax or financial advice. Check the rules on GOV.UK or speak to an accountant or adviser before relying on it. Streamlined Analytics Ltd accepts no liability for how it is used.
What it looks like
Why it's different
- CIS comes off the payment excluding VAT, less what the subcontractor actually paid for materials and hired plant. Your mark-up, labour, travel and own plant all stay in.
- VAT is worked out on the full net invoice, never on the figure after CIS. Under the reverse charge it is shown but not charged, so the amount due is the net less CIS.
- Contractors get a payment log that feeds the statement each subcontractor must have by the 19th, and a check that the monthly return matches.
The worked example
A fictional drylining subcontractor, registered for VAT and CIS, invoices a VAT-registered main contractor for a month's work. The contractor isn't an end user, so the reverse charge applies.
| Line | Charged (net) | Comes off before CIS |
|---|---|---|
| Labour | £8,400.00 | £0.00 |
| Materials (cost to the sub £2,800) | £3,150.00 | £2,800.00 |
| Access platform hired from a third party | £600.00 | £600.00 |
| Travel and subsistence | £250.00 | £0.00 |
| Net invoice | £12,400.00 | £3,400.00 |
- CIS at 20% on £9,000.00: £1,800.00
- VAT at 20% on £12,400.00: £2,480.00, shown but not charged
- Amount due: £10,600.00
- Paid 28 Oct 2026: statement by 19 Nov 2026, HMRC paid by Fri 20 Nov 2026
The seven tabs
- 01How to use: both routes, the monthly routine and the rules
- 02Settings: your business, VAT and CIS rates
- 03VAT treatment: six questions, reverse charge or not
- 04Invoice: CIS on the right part, VAT wording, five checks
- 05Payment log: every payment, deduction and net paid
- 06Statement: the payment and deduction statement
- 07CIS300 tie-out: return figures, deadlines and nil months
Common questions
Is CIS deducted before or after VAT?
From the amount excluding VAT. VAT is worked out on the full net invoice, never on the figure after CIS.
Do I pay CIS on materials?
No, but only on what you actually paid for them, not your mark-up. Plant you hire from someone else counts as materials. Your own plant doesn't. Travel and subsistence are taxed.
How do CIS and the reverse charge work on the same invoice?
They are separate. CIS is a tax deduction from your labour. The reverse charge means your customer pays the VAT to HMRC instead of you. The invoice shows both, and the amount due is the net less CIS.
When doesn't the reverse charge apply?
When the customer isn't VAT-registered (such as a homeowner), the work is zero-rated, it isn't reported under CIS, or the customer has told you in writing that it is an end user.
What must the CIS payment and deduction statement show, and when?
The contractor's name and employer reference, the tax month, your name and UTR, gross paid, materials and the deduction. You should get it by the 19th after each tax month.
My contractor hasn't given me a statement. What can I do?
Ask for it: they're required to give one. Keep your invoices and bank records meanwhile. Your accountant can use them to support your claim.
Is this tax advice?
No. This is a template for general information only. It is not legal, tax or financial advice. Check the rules on GOV.UK or speak to an accountant or adviser before relying on it. Streamlined Analytics Ltd accepts no liability for how it is used.