No. Materials the subcontractor bought for the job come off the invoice before you apply the CIS rate, and so do plant they hired, fuel not for travel, consumables and prefabricated materials. Materials you supplied were never on their invoice.
Free, with no sign-up. Everything is worked out in your browser: nothing you type is sent to us or stored. A guide, not tax advice. Based on GOV.UK guidance checked on 31 October 2026. Use the rate HMRC gave you when you verified the subcontractor.
GOV.UK says to ask for evidence such as receipts. If the subcontractor has none, estimate the cost of the materials.
The difference is large. On the example below, the deduction is on £3,500, not on the full £5,000.
| Invoice, excluding VAT | £5,000 |
|---|---|
| Less what the subcontractor paid for | £1,500 |
| The rate applies to | £3,500 |
| CIS deduction at 20% | £700 |
| VAT on the invoice | £1,000 |
| Pay the subcontractor | £5,300 |
Enter the invoice as the subcontractor sent it. Leave a box empty if it does not apply.
Fuel only counts when it is not for travel. Ask for receipts for materials; if there are none, HMRC says to estimate their cost. Give the subcontractor a payment and deduction statement within 14 days of the end of each tax month.
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