£800
Only the bank receipt
Net pay entered as turnover understates your income. Your bank feed needs to be matched with your contractor statement.
Built for construction • CIS records, made simple
Making Tax Digital for CIS subcontractors. No double taxation, no confusion.
ONLY£15A MONTHCIS deductions do not automatically exempt you from MTD. For 2026/27, the requirement generally applies where your 2024/25 qualifying income exceeded £50,000 and you are not exempt. Avona helps keep your construction records organised for £15 a month.
£15/month + VAT · For self-employed construction subcontractors
Your work. Properly recorded.
A clear view of your pay.Gross labour income£1,000.00The full value of your work
- Paid into your bank
- £800
- CIS deducted at 20%
- £200
One payment. Two records.
Nothing lost in the gap.
Nothing lost in the gap.
- Quarterly summaries, not extra tax bills
- Gross earnings and deductions kept separate
- Claim any refund you are due
The big CIS recording mistake
Your bank payment is not your gross income.
You invoice £1,000 for site labour. Your contractor deducts £200 under CIS and pays you £800. Recording only the bank receipt leaves £200 of turnover out of your records.
£1,000
The full gross income
Record £1,000 of earnings and track the £200 CIS deduction separately. Match both amounts back to the £800 you received.
Example: 20% deduction, labour only, no VAT. HMRC: reporting gross pay and deductions. Check your MTD start date.
Do you have to pay tax every quarter?
No, you are not paying tax twice.
Keep the reporting separate from the payment. Your quarterly update tells HMRC about your business; your CIS deductions are advance payments towards your tax and National Insurance.
Updates are summaries, not tax returns
Quarterly updates report income and expense totals. They can generate an estimated tax bill, but sending an update does not create a quarterly payment deadline.
How quarterly updates workYour CIS deductions count
Keep your contractor’s payment and deduction statements. Report gross income and CIS deductions separately; HMRC offsets the deductions against your final bill.
How deductions are creditedA refund depends on your figures
If deductions exceed your final liability, you may receive a refund. If they fall short, you still owe the balance. Allowable expenses and your wider tax position affect the result.
Read HMRC’s refund guidanceExisting payment obligations, including any payments on account, still apply. Read about payments on account.
Materials and labour, kept separate
Keep more money in your pocket each month.
Eligible materials you paid for directly are excluded from the CIS deduction calculation at cost. Keep evidence and show them separately; a materials markup is not excluded in the same way.
Avona helps you keep materials receipts alongside your labour earnings, so your records tell the whole story.
Read HMRC’s deduction rulesWORKED EXAMPLELabour + materials
- Labour
- £1,000
- Materials supplied at cost
- £200
- Gross invoice
- £1,200
- CIS: 20% of £1,000
- −£200
- Paid to you
- £1,000
No VAT. Assumes eligible materials and a 20% deduction rate. HMRC may specify 30%, or 0% with gross payment status.
Your construction expense checklist
What can you claim as a self-employed subcontractor?
Keep evidence for business costs and exclude private use. These are common categories to review.
Tools & equipment
Power tools, hand tools and replacements used for work. The treatment of equipment can depend on your accounting method.
Protective clothing
Steel-toe boots, high-visibility gear and other protective clothing. Everyday clothes are not normally allowable.
Van & business travel
Eligible leasing, fuel, insurance and servicing costs for business use. Avoid claiming actual vehicle costs again if you use mileage rates.
Materials & consumables
Materials and supplies bought for jobs. Keep receipts and separate any personal purchases.
Insurance & trade fees
Business insurance and relevant trade or professional subscriptions, where allowable.
Accountancy & software
Business accountancy fees and software subscriptions, including the business use of Avona.
On the tools or on the go
Keep your site records organised.
Self-service Avona app
£15 /month + VAT
Your records, in your hands.
Snap receipts from your van, log contractor invoices, track deductions and file quarterly updates in taps.
- Gross earnings and CIS tracking
- Receipts and statements together
- Simple quarterly submissions
Less paperwork. More time on site.
Get your CIS tax records sorted without site disruption.
Keep your earnings, deductions and expenses organised with Avona for £15 a month.
Start for FREE £15/month + VAT