🔨 2025/26 Tax Year · Updated Rates

CIS Tax Calculator 2025/26.

Free online calculator for UK construction subcontractors and contractors. Estimate your CIS refund instantly using the correct 2025/26 rates — including the new 6% Class 4 NIC and the abolished Class 2. Built by chartered accountants. No signup required.

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⚠️ Important: This calculator uses 2025/26 HMRC rates including Class 4 NIC at 6% (reduced from 9% in April 2024) and the abolished paid Class 2 NIC. Results are estimates — your final tax position is determined when you file. For an accurate filing, we charge £300 for a one-off self-assessment if your turnover is below £50K, or £150/quarter for MTD compliance if above.

📊 Your CIS details

Total CIS-eligible labour income before deductions
Self-employed income from work where no CIS was deducted
Optional — gross salary if you also have a PAYE job
Tools, van costs, mileage, PPE, phone, accountancy fees, etc.

💡 Maximise your CIS refund

  • Register for CIS to drop deductions from 30% to 20%
  • Keep receipts for tools, van costs, and PPE
  • Claim mileage at 45p/mile for first 10,000 miles, 25p after
  • Use simplified home-office expenses (£6/week)
  • File early — refunds typically arrive in 2-4 weeks

📈 Your tax breakdown

Total income£0
Less: allowable expenses£0
Taxable profit£0
Income tax due£0
Class 4 NIC (6% / 2%)£0
Class 2 NIC (abolished — voluntary only)£0
Total tax & NIC £0
CIS already deducted£0

📋 Verify CIS deductions

📅 Contractor obligations

  • Verify each subcontractor with HMRC before first payment
  • Submit monthly CIS300 return by 19th of each month
  • Pay deductions to HMRC by 22nd of each month
  • Issue Payment & Deduction Statements within 14 days
  • £100 immediate penalty for late returns, escalating

📊 CIS deduction breakdown

Labour (CIS applies)£0
Materials (paid in full)£0
CIS deduction rate0%
Deduct & pay to HMRC £0
Pay to subcontractor£0
Total payment (gross)£0
★ Contractor support

Need help filing monthly CIS returns?

LOYALS handles all CIS compliance for contractors — verification, monthly CIS300 returns, HMRC payments, and year-end reconciliation. From £75/month.

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Get your CIS return filed properly

Two paths. Pick the one that matches your turnover.

From April 2026 the rules split CIS subcontractors into two groups based on turnover. We handle both — same chartered firm, same Mon-Sat hours, same Business Mentor included free.

Under £50K turnover Annual self-assessment

One-off CIS Self Assessment

£300 one-off

For subcontractors below the £50K MTD threshold. Single annual return, full expense optimisation, refund maximisation, payment-on-account planning.

  • Complete self-assessment preparation & filing
  • Full CIS deduction reconciliation
  • All allowable expenses claimed (tools, van, mileage, PPE)
  • Refund secured — typically 15-30% above DIY estimates
  • Payment on account planning if liable
  • HMRC correspondence handled
  • Free Business Mentor consultation included
Book my £300 SA filing →
Over £50K turnover MTD for Income Tax · April 2026

MTD Quarterly Compliance

£150 /quarter
£600 per year · covers all 4 quarters + final declaration

From 6 April 2026, subcontractors with qualifying income above £50K must file quarterly digital submissions to HMRC. We handle all four plus the year-end final declaration.

  • All 4 quarterly digital submissions to HMRC
  • Year-end final declaration filed on time
  • Full CIS deduction reconciliation each quarter
  • Allowable expenses tracked all year — no January panic
  • Compatible MTD-software setup included
  • Quarterly tax-saving review
  • Free Business Mentor consultation included
Book my MTD quarterly →
⚡ MTD for Income Tax — already in effect

From 6 April 2026 the rules changed.

Sole traders and landlords with qualifying income above £50,000 must now file quarterly digital submissions to HMRC under Making Tax Digital for Income Tax — that's 4 submissions per year plus a final declaration, instead of one annual return.

If your CIS labour income plus any private work or property income is above £50K gross (before expenses), you fall under MTD. Below £50K, you can still file a single annual self-assessment as before. Read more on our dedicated MTD for Income Tax service page.

CIS knowledge base

Understanding the Construction Industry Scheme.

Tap any card to flip — short answers to the most common CIS questions for 2025/26.

📋

CIS deduction rates

What gets withheld from your labour payments.

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  • 20% if CIS registered
  • 30% if not registered
  • 0% with Gross Payment Status
  • Materials always paid in full
  • VAT not subject to CIS
💰

Claiming expenses

Reduce your taxable profit legally.

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  • Tools & equipment
  • Van running costs & repairs
  • Mileage 45p/mile first 10K, 25p after
  • PPE & work clothing
  • Phone & internet (% business)
  • Insurance & trade subscriptions
🎯

Gross Payment Status

Get paid 100% with no CIS deduction.

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  • Receive 100% of labour
  • Pass HMRC compliance test
  • 3+ years trading history
  • Turnover £30K (sole) or £100K (Ltd)
  • Removed for non-compliance
  • Still file self-assessment
📊

Class 4 NIC (2025/26)

Updated rate after April 2024 reduction.

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  • 6% on profits £12,570-£50,270
  • 2% on profits above £50,270
  • Reduced from 9% in April 2024
  • Old calculators still use 9% — wrong
  • Paid via self-assessment
⏰

Class 2 NIC update

Mostly abolished from April 2024.

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  • £0 paid for most subcontractors
  • Voluntary £3.50/wk for state pension
  • Below Small Profits Threshold only
  • Profits above £6,725 = qualifying year automatic
  • Speak to us if unsure
📱

MTD for Income Tax

Quarterly digital filing from April 2026.

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  • £50K+ qualifying income from Apr 2026
  • £30K+ from April 2027
  • 4 quarterly submissions
  • Plus year-end final declaration
  • Compatible MTD software needed
  • £150/quarter with LOYALS

📊 CIS Status comparison: cash flow on £40K labour

How your CIS registration status affects what hits your bank account before tax

CIS StatusRateCIS DeductedCash Flow
❌ Unregistered30%£12,000Receive £28,000
⚠️ Registered20%£8,000Receive £32,000
✅ Gross Payment Status0%£0Receive £40,000
All three pay the same final tax via self-assessment. CIS deductions are advance payments only. GPS gives maximum working capital — but stricter compliance.
Critical CIS dates

Key deadlines for the 2025/26 tax year.

Miss any of these and HMRC charges penalties starting at £100 with no extension. We handle every one of them for our clients automatically.

19
MONTHLY

Monthly CIS Return Deadline (Contractors)

Submit CIS300 return online by 19th of each month covering the previous tax month (6th to 5th).

22
MONTHLY

Payment to HMRC (Contractors)

Pay all CIS deductions withheld to HMRC by 22nd of each month (17th if paying by post).

5
OCT 2026

Self Assessment Registration

If you started subcontracting in 2025/26, register for self-assessment by 5 October 2026 to avoid £100 penalty.

31
JAN 2027

Self Assessment & Tax Payment (2025/26)

Online filing deadline plus first payment on account. Late filing = £100 immediate penalty, escalating from there.

31
JUL 2027

Second Payment on Account

If your tax bill exceeded £1,000, second 50% advance payment is due. Can be reduced if income drops.

Q1
FROM APR 2026

MTD Quarterly Submissions (£50K+)

If qualifying income exceeds £50K, file quarterly digital submissions starting 7 August 2026, 7 November 2026, 7 February 2027, 7 May 2027.

KN ★
★ Your dedicated account manager

Meet Kris Nick.

Founder & Senior Chartered Accountant · Personally manages every CIS engagement

When you book LOYALS for your CIS return — annual or MTD — Kris handles your account directly. No junior staff, no ticket queues, no "I'll have to check with the team". One name, one number, one chartered accountant who knows construction tax inside out and answers WhatsApp on Saturdays.

Book a call with Kris →

Ready to hand it over? Book a free 15-min call.

Tell us about your CIS situation in 4-5 questions and we'll quote you in writing — £300 if you're under £50K, £150/quarter if you're MTD. No pressure, no follow-up if it's not a fit.

Mon-Sat 10am-7pm No obligation Fixed fee in writing Same-day callback
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CIS questions answered

Frequently asked questions.

Updated for 2025/26 tax year. If your question isn't here, message us on WhatsApp or book a free 15-minute call.

What CIS deduction rate applies in 2025/26?+
CIS-registered subcontractors have 20% deducted from labour payments. Unregistered subcontractors have 30% deducted. Subcontractors with Gross Payment Status (GPS) have 0% deducted. Materials are always paid in full without deductions. These rates have not changed for 2025/26.
What is the Class 4 NIC rate for self-employed subcontractors in 2025/26?+
Class 4 NIC is 6% on self-employment profits between £12,570 and £50,270, and 2% on profits above £50,270. The rate was reduced from 9% to 6% in April 2024 — many older calculators still use the old 9% rate which produces incorrect results. Our calculator uses the current 6% rate.
Do I still pay Class 2 National Insurance as a CIS subcontractor?+
No — paid Class 2 NIC was abolished from April 2024. You no longer pay £3.45 per week. However, you may choose to pay voluntary Class 2 NIC at £3.50 per week to maintain your State Pension and certain benefit entitlements if your profits are below the Small Profits Threshold. Most full-time subcontractors with profits above the threshold get the qualifying year automatically without paying Class 2.
From April 2026 do CIS subcontractors need MTD for Income Tax?+
Yes — if your qualifying income (CIS plus any other self-employment or property income, gross before expenses) is above £50,000 you must use Making Tax Digital for Income Tax from 6 April 2026. That means quarterly digital submissions plus a final declaration. From April 2027 the threshold drops to £30,000. Below those thresholds you can still file an annual self-assessment return. We handle MTD compliance at £150 per quarter covering all four quarters plus the final declaration.
How much does a CIS self-assessment cost with LOYALS?+
For subcontractors with qualifying income below £50,000 we charge £300 one-off for your annual CIS self-assessment — preparation, expenses optimisation, refund maximisation, HMRC submission, and payment on account planning. For subcontractors above the £50,000 MTD threshold we charge £150 per quarter (£600 per year) which covers all four MTD quarterly submissions plus the year-end final declaration. Both options include unlimited WhatsApp support and a free Business Mentor consultation.
How do I calculate my CIS tax refund for 2025/26?+
Add your CIS income plus any other income (private work, PAYE jobs). Subtract allowable business expenses to get your taxable profit. Apply the £12,570 personal allowance. Tax at 20% on the basic rate band up to £50,270, 40% above that, and 45% above £125,140. Add Class 4 NIC at 6% on profits between £12,570 and £50,270, then 2% above. Class 2 NIC is no longer paid by most subcontractors. Subtract CIS deductions already withheld. If CIS deductions exceed your liability you receive a refund.
What is payment on account for CIS subcontractors?+
If your tax bill after CIS deductions exceeds £1,000, HMRC requires two advance payments toward next year's tax: 50% by 31 January with your tax return, and 50% by 31 July. These are advance payments, not extra tax. If your income drops you can claim a reduction. Your accountant should manage this calculation as part of filing your return.
Can I claim my van and tools against CIS tax?+
Yes. Allowable expenses for CIS subcontractors include tools, equipment, van running costs (fuel, MOT, insurance, repairs), business mileage at 45p per mile for the first 10,000 miles then 25p, safety clothing and PPE, phone and internet (business portion), trade insurance, professional subscriptions, accountancy fees, and home-office costs (£6 per week using simplified expenses). Keep all receipts for 6 years.
My CIS deductions are higher than my tax bill — when do I get my refund?+
Once your self-assessment is filed, HMRC typically processes refunds within 2-4 weeks for online submissions. Refunds are paid by bank transfer. Filing earlier in the year (April-October) typically results in faster refunds because HMRC's queue is shorter. Last-minute January filers often wait 6-8 weeks.
What happens if a contractor deducted the wrong CIS rate?+
If a contractor deducted 30% when you were CIS-registered (should have been 20%) or vice versa, you can reclaim the difference through your annual self-assessment. Always check your monthly Payment and Deduction Statements (PDS) — these are your proof of deductions made. If statements are missing, request them from the contractor immediately or contact HMRC's CIS helpline.

Related LOYALS pages

If you're done with the calculator and want to dig deeper.

🔨 CIS Construction Service 🏗️ Construction Accountants 👤 Self Assessment Service 📱 MTD for Income Tax 💷 Full Service Fees 🧮 All Free Calculators 🔄 Switching Accountants 🎯 Business Mentor 📅 Book A Call

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