What Is CIS Invoicing and How Does It Apply to UK Tradespeople
CIS invoicing is the invoicing method used by UK construction workers, tradespeople, and subcontractors operating under the Construction Industry Scheme (CIS) tax rules. Invoicr by MRVL supports CIS compliance on its Business plan, designed specifically for UK sole traders and construction professionals.
What CIS invoicing means
CIS stands for Construction Industry Scheme. It is a tax system run by HMRC that applies to workers in construction, demolition, repair, and similar trades. Under CIS, contractors deduct tax from subcontractor invoices at source (currently 20% unless the subcontractor holds CIS exemption status). This means when you invoice as a CIS-registered subcontractor, your client withholds 20% of payment unless you hold an exemption certificate. The remainder is paid directly to you. As of 2026, CIS compliance is non-negotiable for UK tradespeople working on construction projects, making invoicing software that understands these rules essential.
How CIS invoicing differs from standard invoicing
Standard invoices simply state an amount due and payment terms. CIS invoices must include your CIS registration number, the client's CIS deduction, and the net amount they will pay you after deduction. The invoice must clearly break down the gross charge, the 20% CIS deduction, and the net payment. Software that handles this automatically saves time and reduces errors. Many generic invoicing apps do not account for CIS deductions, which is why tradespeople need purpose-built tools. Invoicr's Business plan includes automated CIS compliance so your invoices calculate deductions correctly and your records stay audit-ready.
Who needs CIS invoicing
If you are a UK sole trader, subcontractor, or small tradesperson working in construction, demolition, roofing, plumbing, electrical work, carpentry, or site cleaning, you likely fall under CIS. Clients (main contractors) are required to operate CIS and deduct tax from your invoices. Handymen, gardeners, decorators, and mobile mechanics may or may not be CIS-registered depending on the nature of their work and client base. If your clients ask for your CIS number on invoices, you are almost certainly CIS-registered. Invoicr's Business tier is built for these professionals.
CIS invoicing compliance with Invoicr Business
Invoicr's Business plan (£19.99/month or £179.99/year) includes built-in CIS compliance tools. Your invoices automatically reflect CIS deductions, and all records are formatted for HMRC submission. The plan also includes 5 team seats, so you can add employees or office staff, VAT compliance if you are VAT-registered, and accountant export. This means your invoices stay compliant, your records are audit-ready, and your accountant can easily import your data at year end. For UK tradespeople managing multiple jobs and clients, this removes the risk of CIS invoicing errors.
Payment method advantages for CIS tradespeople
Invoicr uses UK open banking for payments, which means clients pay you bank to bank instead of by card. On a £500 invoice, you pay around £4 in payment costs instead of £12.50 with a traditional card processor. For tradespeople on tight margins, this cost saving compounds across dozens of invoices each month. CIS deductions already take 20% of your payment; the last thing you need is another 2.5% cut by a payment processor. Invoicr's low flat-fee payment method is designed for UK sole traders and construction professionals who need to keep more of what they earn.
Getting started with CIS invoicing on Invoicr
Start with the Free plan if you want to try Invoicr (5 invoices per month, 3 customers). When you are ready for CIS compliance, upgrade to Business. You will be asked to provide your CIS registration number, which Invoicr stores securely and includes on your invoices automatically. From that point, all your invoices will calculate CIS deductions and format the payment breakdown correctly. Your invoices can be delivered via WhatsApp, email, or a secure client portal. At the end of the tax year, export your invoicing data directly to your accountant, saving you hours on reconciliation.
Ready to invoice with CIS compliance built in. Download Invoicr and upgrade to Business.
Frequently asked questions
Do I need CIS invoicing if I'm self-employed in the UK
Only if you work in construction, demolition, or related trades and your clients are registered contractors. If your clients ask for your CIS number, you are CIS-registered. Other trades (plumbing, electrical, gardening) may or may not be CIS-dependent on who you invoice.
What percentage does CIS deduct from invoices
20% is deducted at source from invoices, unless you hold a CIS exemption certificate. With an exemption, you receive 100% of the invoice amount and pay tax through self-assessment.
Can I use Invoicr if I'm not CIS-registered
Yes. The Free and Pro plans work for any UK freelancer or sole trader. You only need the Business plan if you require CIS compliance, VAT, team seats, and accountant export.
How much does CIS compliance cost on Invoicr
CIS compliance is included on the Business plan at £19.99/month or £179.99/year. This also covers VAT compliance, 5 team seats, and accountant export.
Do I need to tell HMRC I'm using Invoicr
No. Invoicr is an invoicing app; it does not register you with HMRC. You must register for CIS directly with HMRC. Invoicr then helps you stay compliant once you are registered.
Can my accountant import invoices from Invoicr
Yes. The Business plan includes accountant export, so you can export your invoicing data at year end in a format your accountant can import directly.