2025/26 Tax Year

Builder Tax Calculator 2025/26

Calculate your take-home pay as a self-employed builder or construction worker. Factor in CIS deductions, tool costs, and van expenses to see your real tax position.

HMRC-Approved Categories

Common deductions for builders

These are typical expenses you may be able to claim against your taxable profit.

Tools and power tools

Drills, saws, nail guns, levels, mixers, and other construction tools. Claim under the Annual Investment Allowance.

Van and vehicle costs

Work van or truck fuel, insurance, road tax, MOT, servicing, and repairs — business proportion.

Building materials

Timber, cement, plasterboard, screws, and other materials you supply that are not recharged to the client.

Work clothing and PPE

Hard hats, hi-vis vests, steel-toe boots, safety glasses, and dust masks required on site.

CSCS card and training

CSCS card renewals, health and safety courses, and trade qualification training.

Skip hire and waste disposal

Site clearance, skip hire, and waste disposal costs incurred during jobs.

Public liability insurance

Insurance premiums required for working on construction sites and client properties.

Subcontractor payments

Payments to other tradespeople you hire to work on your jobs (subject to CIS if applicable).

£
£

Tax year 2025/26 (6 Apr 2025 – 5 Apr 2026). Rates from gov.uk

Yearly

£25,120

take-home

Monthly

£2,093

take-home

Weekly

£483

take-home

Deductions

Income Tax£3,486.00
National Insurance£1,394.40
Total deducted£4,880.40

Effective rate

16.27%

The actual percentage of your total income going to income tax and NI combined.

Marginal rate

28%

The tax rate on your next £1 of income. Above £100k this can be 60% due to Personal Allowance tapering.

Income tax bands

Personal AllowanceTax-free
£12,570 taxed£0.00
Basic Rate20%
£17,430 taxed£3,486.00

Where your money goes

Income TaxNITake-Home

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Direct Answer

How does CIS affect a self-employed builder's tax?

Under the Construction Industry Scheme (CIS), contractors deduct 20% from your payments and send it to HMRC. This is not extra tax — it is an advance payment. When you file your Self Assessment, CIS deductions are offset against your tax bill. If more was deducted than you owe, you get a refund. Self-employed builders pay income tax on net profit (after expenses) and Class 4 NI at 6% on profits between £12,571 and £50,270.

  • CIS deductions (20%) are advance tax payments, not additional tax
  • Offset CIS against your Self Assessment tax bill
  • Tools, van costs, PPE, and materials are deductible
  • CSCS card and training fees are claimable
  • File by 31 January to claim any CIS refund

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Frequently asked questions