CIS invoice template
A subcontractor invoice that does the Construction Industry Scheme maths for you. Split labour from materials, apply the 20% (or 30%) deduction to the labour only, and print an HMRC-style statement showing gross, materials, deduction and net payable.
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Invoice details
Your business
Client
Work and materials
Only if you're VAT registered
Subcontractor invoice with the contractor's CIS deduction worked out for you. Included with Pro — £12/year.
Payment details and notes
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| Description | Qty | Unit | Amount |
|---|---|---|---|
| Labour — groundworks, 3 days(labour) | 3 | £220.00 | £660.00 |
| Materials — concrete and rebar(materials) | 1 | £340.00 | £340.00 |
How CIS deductions work
When you work as a subcontractor for a contractor registered under the Construction Industry Scheme, the contractor pays part of your invoice straight to HMRC instead of to you. That money counts towards your tax and National Insurance bill for the year.
- The deduction applies to labour only — never to materials or plant hire.
- 20% is the standard rate once the contractor has verified you with HMRC.
- 30% applies if you are not registered or cannot be verified.
- 0% applies if you hold gross payment status.
- VAT sits outside the deduction and is added after it.
Worked example
| Labour | £660.00 |
| Materials (excluded from CIS) | £340.00 |
| Gross amount | £1,000.00 |
| CIS deducted at 20% of labour | −£132.00 |
| Net payable to you | £868.00 |
CIS invoice questions
- How much is deducted under CIS?
- 20% if the contractor has verified you with HMRC, 30% if you are not verified, and 0% if you hold gross payment status. The deduction is taken from the labour element only.
- Are materials included in the CIS deduction?
- No. The cost of materials, plant hire and consumables you paid for is taken off the gross amount before the deduction is worked out. Mark those lines as materials and FairInvoice excludes them.
- Is VAT deducted under CIS?
- No. CIS is calculated on the labour figure excluding VAT. Any VAT you charge is added after the deduction, and under the domestic reverse charge the contractor accounts for the VAT instead.
- What has to be on a CIS invoice?
- Your name, address and UTR, the contractor's details, an invoice number and date, a split of labour and materials, the gross amount, the deduction rate and amount, and the net payable figure.
CIS mode is part of FairInvoice Pro (£12/year). See what Pro includes. Standard invoices and quotes stay free forever. This page is general information, not tax advice — check your own position with HMRC or your accountant.