by Asim Abbas
11 November 2026 
CIS gross payment status: how to get paid without deductions
CIS gross payment status: how to get paid without deductions
Most CIS subcontractors have 20% deducted from labour payments, then wait until after the tax year for any refund.
- Gross status means no CIS deductions
- Turnover test of £30,000 for sole traders
- Requires a clean compliance record
- HMRC reviews status regularly
With gross payment status, contractors pay you in full, which transforms cash flow. You then pay your own tax through Self Assessment or Corporation Tax.
This guide explains the tests, how to apply and how to keep the status.
The three tests
- Business test: you carry on construction work in the UK through a bank account
- Turnover test: construction turnover, excluding VAT and materials, of at least £30,000 for a sole trader, or for companies and partnerships £30,000 per director or partner, or £100,000 in total
- Compliance test: tax returns and payments on time in the last 12 months, with limited exceptions
The compliance test
HMRC looks at Self Assessment, Corporation Tax, PAYE, CIS and VAT obligations. Minor lateness may be ignored, but repeated late filing or payment will usually lead to refusal. VAT and other taxes were added to the test in recent reforms.
CIS tax rebate calculator
Deductions vs actual tax.
Ross, a self-employed joiner, has £48,000 of labour turnover. Under CIS, £9,600 is deducted during the year, while his actual tax and NI bill is £6,900. With gross status, he keeps the £9,600 during the year and pays £6,900 through Self Assessment, improving his cash flow without waiting for a refund.
How to apply
Apply online through your Government Gateway account or by phone. HMRC checks your records, which can take a few weeks. If refused, you can appeal within 30 days.
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179Keeping the status
HMRC reviews gross status regularly. Late returns or payments can trigger removal, after which you must wait a year before reapplying. Set up Direct Debits and diary deadlines.
Is it right for you?
Gross status means discipline. You must save for tax yourself. If budgeting is hard, the 20% deduction can act as forced saving.
See HMRC’s guidance on gross payment status, our CIS guide and our CIS service.
What should I do next?
Labour, excluding VAT.
On time for 12 months.
Or by phone.
Frequently Asked Questions
What is CIS gross payment status?
Being paid without CIS deductions.
What turnover do I need?
£30,000 for sole traders, excluding VAT and materials.
Can HMRC remove gross status?
Yes, if you fall behind with tax obligations.
How long does an application take?
Usually a few weeks.
Should every subcontractor apply?
Only if you can manage saving for tax yourself.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.
