Free CIS Deduction Invoice (Construction) Generator
Specialized invoice generator for UK construction subcontractors subject to HMRC Construction Industry Scheme deductions.
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Statutory Requirements for a CIS Deduction Invoice (Construction)
Under HM Revenue & Customs regulations, invoices must follow strict documentary standards to be considered valid for tax deductions and VAT reclaim.
Mandatory Invoice Checklist (HMRC Standards)
Sequential invoice number.
Date invoice was issued.
Full business or trader name as registered with HMRC CIS.
10-digit UTR of the subcontractor.
NINO for sole traders; CRN for limited companies.
Full name of the paying contractor.
Clear separate total for qualifying construction labor subject to CIS deduction.
Direct cost of materials and consumables exempt from CIS deduction.
Calculated CIS withholding (20% or 30% of labor net of VAT).
Gross invoice total minus CIS deduction.
CIS Deduction Worked Example (Labor vs Materials)
A carpentry subcontractor invoicing a main contractor for £1,500 in labor and £500 in timber materials, verified under CIS at the standard 20% deduction rate.
| Description | Qty | Unit Rate | VAT | Line Total |
|---|---|---|---|---|
| Joinery & Installation Labor (Qualifying CIS) | 1 | £1,500.00 | 20% VAT | £1,500.00 |
| Structural Timber & Fixings (Direct Materials) | 1 | £500.00 | 20% VAT | £500.00 |
Special UK Regulatory Provisions
Materials Exclusion
CIS deduction must NOT be applied to the cost of materials, consumable stores, fuel, or plant hire actually paid for by the subcontractor.
Domestic Reverse Charge Interplay
If both CIS and Domestic Reverse Charge (DRC) apply, the invoice must also include the DRC statement and exclude VAT from the total payable.
Frequently Asked Questions
How does CIS deduction interact with materials and plant hire?
Under HMRC rules, CIS withholding is strictly calculated on the labor element. The direct cost of materials, consumable items, and plant hire paid for by the subcontractor is exempt from CIS deduction.
What information must a subcontractor include on a CIS invoice?
A compliant CIS invoice must show the subcontractor's Unique Taxpayer Reference (UTR), National Insurance Number or Company Registration Number, and a clear mathematical separation between labor and materials.
How does the contractor confirm my deduction rate?
Before making payment, the contractor verifies your status directly with HMRC CIS online services. Registered subcontractors have 20% deducted, unverified subcontractors have 30% deducted, and subcontractors with gross payment status have 0% deducted.
Does VAT apply before or after the CIS deduction?
VAT is calculated on the full gross value of the goods and services before any CIS deduction is made. (Note: if the Domestic Reverse Charge applies, VAT is accounted for directly by the contractor).
Other UK Invoice Formats & Tax Schemes
Important Compliance Disclaimer:
Invoice Meadow is an independent software tool and is not affiliated with, endorsed by, or operating on behalf of HM Revenue & Customs (HMRC) or the UK Government. Tax rates, VAT rules, and statutory guidelines are provided for general informational purposes only and do not constitute formal legal, accounting, or tax advice. Always consult a qualified accountant or tax advisor regarding your specific business obligations.