CIS invoice template with the deduction worked out
Based on HMRC Construction Industry Scheme guidance · Reviewed November 2026
A CIS invoice is a UK subcontractor invoice that splits labour from materials. The contractor deducts CIS from the labour part and pays it to HMRC. The sheet above opens with a bricklayer billing a main contractor in Leeds.
CIS invoice
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What it includes
- Subcontractor name, address, UTR and VAT number
- Invoice number and date
- Contractor name and address
- Site address, PO number and period of work
- Labour lines
- Materials lines
- Subtotal, labour total and materials total
- CIS rate and deduction
- VAT under reverse charge
- Amount payable
- Payment instructions
CIS invoice: full text
INVOICE
[J. Walsh Brickwork]
[Unit 3, Mill Lane, Leeds LS12] · [Phone] · [Email]
UTR: [number] · VAT no.: [number]
Invoice no.: [CIS-2026-014]
Date: [30 November 2026]
Due date: [14 December 2026]
Contractor:
[Harrow Construction Ltd]
[Contractor address]
Site: [14 Station Road extension] · PO: [HC-2026-311]
Period of work: [3 to 28 November 2026]
Description Qty Rate Amount
[Labour: bricklaying, per day] [10] [220.00] [2,200.00]
[Labour: labourer, per day] [10] [130.00] [1,300.00]
[Labour: groundworks, per day] [3] [240.00] [720.00]
[Materials: facing bricks, per 1,000] [4] [690.00] [2,760.00]
[Materials: sand and cement, lot] [1] [315.00] [315.00]
[Materials: wall ties and DPC, lot] [1] [84.00] [84.00]
Subtotal [7,379.00]
Labour total [4,220.00]
Materials total [3,159.00]
Less CIS [20]% of labour [-844.00]
AMOUNT PAYABLE [£6,535.00]
VAT at 20% on [£7,379.00]: [£1,475.80]
Reverse charge: Customer to pay the VAT to HMRC.
Payment instructions
Sort code [00-00-00] · Account [number] · Ref [CIS-2026-014]
Please send the payment and deduction statement for this period.How the CIS deduction works
Under the Construction Industry Scheme a contractor deducts money from a subcontractor's payment. The money goes to HMRC as an advance towards the subcontractor's tax and National Insurance.
| Subcontractor status | Deduction rate |
|---|---|
| Registered for CIS | 20% |
| Not registered for CIS | 30% |
| Gross payment status | 0% |
The contractor starts from the gross invoice. It takes off VAT and the costs the subcontractor paid for. Those include materials bought directly, equipment hire for the job and non-travel fuel. The rate applies to what is left, which in practice is labour.
A bricklayer's invoice worked out
J. Walsh Brickwork builds an extension wall for Harrow Construction. The subcontractor is registered for CIS and for VAT.
| Line | Qty | Rate (£) | Amount (£) |
|---|---|---|---|
| Labour: bricklaying, per day | 10 | 220.00 | 2,200.00 |
| Labour: labourer, per day | 10 | 130.00 | 1,300.00 |
| Labour: groundworks, per day | 3 | 240.00 | 720.00 |
| Materials: facing bricks, per 1,000 | 4 | 690.00 | 2,760.00 |
| Materials: sand and cement, lot | 1 | 315.00 | 315.00 |
| Materials: wall ties and DPC, lot | 1 | 84.00 | 84.00 |
| Subtotal | 7,379.00 | ||
| Labour total | 4,220.00 | ||
| Materials total | 3,159.00 | ||
| Less CIS 20% of labour | -844.00 | ||
| Amount payable | 6,535.00 |
VAT at 20% on £7,379.00 is £1,475.80. Under the reverse charge the contractor accounts for it to HMRC. It is shown on the invoice but not added to the amount payable.
The same job at other CIS rates
| Case | Deduction on £4,220 labour | Amount payable |
|---|---|---|
| Registered, 20% | £844.00 | £6,535.00 |
| Not registered, 30% | £1,266.00 | £6,113.00 |
| Gross payment status, 0% | £0.00 | £7,379.00 |
Write the rate the contractor confirmed on the invoice. The contractor verifies each subcontractor with HMRC and applies the rate given.
VAT domestic reverse charge on a CIS invoice
The VAT domestic reverse charge covers most building and construction services. It applies between VAT-registered businesses when the payment is reported under CIS. It applies to invoices with a tax point on or after 1 March 2021.
The invoice must say the reverse charge applies. HMRC accepts wording such as these.
- Reverse charge. Customer to pay the VAT to HMRC
- S55A VATA 94 applies
- VAT Act 1994 Section 55A applies
The reverse charge does not apply when the customer is an end user and says so in writing. Then VAT goes on the invoice as normal and the total includes it.
Weekly or monthly CIS invoices
Many subcontractors bill every Friday for the days worked that week. Others bill once a month against a valuation.
- Weekly bills keep cash moving on labour-only jobs.
- Monthly bills suit jobs where materials arrive in large loads.
- Each invoice should cover days inside one period only.
- Number the invoices in one series across all contractors.
Match your invoice dates to the contractor's payment run. An invoice that misses the run waits another week or month.
Fields a CIS subcontractor invoice needs
| Field | Why it is there |
|---|---|
| Unique Taxpayer Reference | The contractor uses it to verify you |
| VAT number | Only if you are VAT registered |
| Site address and PO number | Links the invoice to the right job |
| Period of work | Week or month the labour covers |
| Labour and materials apart | The deduction falls on labour only |
| CIS rate and deduction | Shows how the amount payable was reached |
| Reverse charge wording | Required when the reverse charge applies |
Chasing a main contractor on WhatsApp
Subcontractors usually bill weekly or monthly against a valuation. The contractor pays the net amount and sends a payment and deduction statement.
The statement is due within 14 days of the end of each tax month. A tax month runs from the 6th to the 5th. For 6 May to 5 June the statement is due by 19 June.
Send this message with the invoice to the site manager or the office.
Hi Sarah. Invoice CIS-2026-014 for the Station Road extension is attached. Labour £4,220 and materials £3,159. CIS at 20% on labour is £844. Amount payable is £6,535 with reverse charge VAT. Could you confirm the payment date? Thanks, Jim Walsh.
Keep each payment and deduction statement. The deductions count towards your tax bill at the end of the year.
Common CIS invoice mistakes
- Labour and materials on one line. The contractor then deducts from the whole amount.
- VAT added to the total under reverse charge. The contractor will send it back.
- No reverse charge wording. The invoice is not complete for VAT.
- Deducting CIS yourself on the wrong base. Show it from labour only.
- No UTR on the invoice. Payment waits while the office asks for it.
- Missing statements not chased. Ask for each one after the tax month ends.
Makatea tracks what each contractor owes
A subcontractor may work for four contractors at once. Makatea lists each invoice and the net amount due after CIS.
Makatea sends the WhatsApp reminder when payment is due and records it when the money arrives. The list shows who still owes for which week.
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Frequently asked questions
What is the CIS deduction rate?
20% for registered subcontractors, 30% for unregistered ones and 0% with gross payment status.
Is CIS deducted from materials?
No. The contractor removes VAT and costs such as materials you bought before applying the rate. The deduction falls on labour.
Do I add VAT to a CIS invoice?
Show it, but under the reverse charge do not add it to the total. The contractor accounts for it to HMRC. Add the reverse charge wording.
When does the reverse charge not apply?
When the customer is an end user and tells you in writing. Then you charge VAT as normal.
Who sends the CIS statement?
The contractor. A payment and deduction statement is due within 14 days of the end of each tax month.
Does this template file anything with HMRC?
No. It is a commercial invoice for billing and collection. Returns and verifications are made in the official HMRC services.
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