CIS taken off materials as well as labour
The deduction applies to labour only. Plant hire and materials are untouched. Software that bundles them together quietly costs you money on every job.
Know what actually lands.
CIS comes off the labour, never the materials. Work out what the contractor will withhold before you send the invoice, not after you get paid.
What goes wrong.
These are the things people actually lose money and hours over.
Reverse charge and CIS on the same invoice
Under the domestic reverse charge you charge no VAT and the customer accounts for it, while CIS still comes off the labour. The two together defeat most people.
Not knowing the net before you invoice
Gross status, registered at 20%, unregistered at 30%. The difference on a £5,000 job is £500 you either expected or did not.
Mileage at the wrong rate
The first 10,000 miles went from 45p to 55p on 6 April 2026. Claiming at the old rate for the current year leaves money behind.
Ask in ChatGPT
Try it without an account.
Connect FIGURX in ChatGPT and ask any of these. Every answer is calculated, and nothing is sent, filed or recorded.
- £1,000 labour and £500 materials, I am CIS registered. What will I be paid?
- Same job but with the reverse charge. What goes on the invoice?
- I have done 11,000 business miles this year. What can I claim?
- The invoice is £5,000 and 45 days late. What can I add?
Open ChatGPT
Copy the address, then add it in ChatGPT under Settings, Connectors.