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CIS & Compliance
6 min read
CIS Deductions Explained: A Complete Guide for Contractors
10 February 2026
Understanding CIS deductions, rates, and how to handle them in your invoicing — without the headaches.
How CIS Deductions Work
CIS requires contractors to deduct money from subcontractor payments and pass it to HMRC. It sounds simple — but if your process is manual, errors in deduction rates and statement exports are common.
How to Stay Compliant
The easiest way to stay compliant is to use one invoice workflow that applies customer-specific CIS rates and records net values automatically — no spreadsheets, no manual calculations.
- Store verification status per customer — so you always apply the right rate
- Apply CIS rates consistently per invoice
- Export monthly deduction statements for your accountant