Sole Trader Tax GuideUpdated 2026-10-08HMRC 2026/27

CIS: materials on the invoice versus labour

Why CIS subcontractors should keep materials separate from labour, without pretending this app calculates the deduction.

✓ VerifiedFact-checked against HMRC Business Income Manual (BIM45000), EIM31240, and statutory sole-trader record rules.

If you are paid under the Construction Industry Scheme, the contractor often deducts tax from the labour part of the payment. Materials on the invoice are treated differently. Mixing them up is how people overpay and then spend January untangling it.

What to keep

Keep the supplier receipt for materials you bought: timber, cable, fittings. Keep the contractor’s statement that shows what was paid and what was deducted. Receipts Dock can file the B&Q or Screwfix receipt under materials. It does not calculate the 20% or 30% CIS deduction, and it does not produce a CIS invoice.

Send both piles to your bookkeeper. The pack is the receipts. The statements still come from the contractor.

Statutory Record-Keeping Notice: Under Section 12B of the Taxes Management Act 1970, UK sole traders must keep and preserve all records needed to deliver a correct and complete return. Receipts Dock preserves your photos and CSV ledgers for 6 full years. This guide is for record-keeping purposes and is not formal tax advice.

🔍 SA103 Box FinderSearch materials and tools to find their exact HMRC tax box.🚗 55p Mileage CalculatorWork out 55p & 25p tax allowance on business journeys.

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Photograph the receipt on the web, email it, or message Telegram. We extract the year for your bookkeeper. 5 free scans lifetime.

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Mileage at 55p, and the log HMRC expectsThe 2026/27 simplified mileage rate is 55p for the first 10,000 business miles and 25p after that. Here is the log to keep.

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