Skip to main content

WORKER TYPE

Construction worker payslip guide

CIS deduction at 20 percent (or 30 percent if unverified), gross status, weekly pay versus monthly. Construction payslips often confuse workers because the CIS deduction is income tax pre-paid, not a separate deduction.

Check My PayslipAll worker guides

Educational estimates only. Not tax, legal, financial, payroll or employment advice. Verify with your employer's payroll team or HMRC.

Related

Common questions

What is CIS?

The Construction Industry Scheme. Contractors deduct income tax at source from payments to subcontractors at 20 percent (verified subcontractors) or 30 percent (unverified). The amount is pre-paid against your annual income tax bill, reconciled via Self Assessment after year-end.

Should my CIS deduction be 20 or 30 percent?

20 percent if your contractor has verified you with HMRC. 30 percent if you have not been verified - usually because you have not given the contractor your Unique Tax Reference (UTR) and National Insurance number, or HMRC has not confirmed you. Get verified to drop to 20 percent.

What is gross status?

A status granted by HMRC that lets contractors pay you the full amount with no CIS deduction. To qualify you must meet turnover, compliance and business tests. Once granted, your CIS statements show a full payment and you settle your full tax bill via Self Assessment.

Do I need to file Self Assessment as a CIS subcontractor?

Yes. CIS deductions are pre-payments of income tax, not final tax. You must file Self Assessment by 31 January following the tax year, declaring all CIS income, and HMRC reconciles the deductions against your actual tax liability. Most CIS subcontractors get a refund.

Check My Payslip

Free. Private. No signup.

Open the tool

PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.