CIS applies to labour only, never materials, and the rate depends on your registration status — 20% registered, 30% unregistered, or 0% with gross payment status. DayGraft calculates it automatically on every day you log, and gets it right every time.
A common mistake with manual CIS calculations is deducting the full day value, including materials. DayGraft separates labour from materials on every entry, so CIS is only ever applied to what HMRC actually requires.
Choose your rate once and every calculation — daily totals, weekly statements, tax-year figures, and the CIS refund estimate — uses it automatically from then on.
Your CIS deduction is broken out on the statement you send your contractor, so both sides can see labour, materials, the deduction, and the net amount payable at a glance.
Settings shows total labour, total CIS deducted, and your net position for the current tax year — kept up to date automatically as you log days, ready for your Self Assessment or your accountant.
Whether you're paid a day rate, hourly, or on Auto OT with overtime rules, CIS is calculated correctly on the labour portion either way.
The Construction Industry Scheme (CIS) requires contractors to deduct tax at source from subcontractors' pay before it's paid out — 20% if you're registered, 30% if you're not, or 0% if you hold gross payment status. It's deducted on account of your eventual tax bill, not as a final amount.
No — CIS only applies to the labour element of what you're paid. Materials you've supplied and been reimbursed for should never have CIS deducted from them. DayGraft keeps these separate automatically so the calculation is never wrong.
30% applies if you're not registered with HMRC for CIS, or if HMRC can't verify you. Registering for CIS (a straightforward process with HMRC) drops the rate to 20% — a meaningful difference on real earnings, often several thousand pounds a year.
Gross payment status means HMRC has agreed you can be paid without any CIS deduction at all, on the basis you'll handle your own tax directly through Self Assessment. It has to be applied for and meets specific turnover and compliance conditions.
Yes — update it anytime in Settings. Everything that depends on it, including past statements you haven't yet sent and the tax-year totals, recalculates using the new rate.
Yes. If you're VAT-registered, DayGraft handles VAT separately per contractor (standard or domestic reverse charge), and CIS is always calculated on labour excluding VAT, matching HMRC's own rules.
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