CIS Vouchers

Subcontractors paid under the Construction Industry Scheme usually have tax taken off before they are paid, often at 20%. What reaches the bank is the net. The more flexible lenders do not work out the maximum from that net. They use the gross income on the vouchers.

They want the vouchers and bank statements that match the payments. Many lenders ask for a spread of 3 to 6 months. The most flexible ask only for the latest 3 consecutive months. The vouchers must come from the company you are working for. A statement you have raised yourself is not accepted. If you have just changed contract, those months can come from more than one company, as long as they run together.

The gross is averaged across the months provided and then annualised. Where a lender is using three months, a period with no voucher counts as nothing, and the year is often treated as 46 working weeks rather than 52. That is still usually higher than net pay, and higher than profit after expenses on a tax return. Not every lender will use the gross. Some stay with the tax calculation. We put the vouchers in front of a lender whose rules actually use them.

There is no increase in the rate or lender fee because the income is from CIS. Standard lender rates and fees apply to the lenders we deal with.

The vouchers and the matching bank statements are the evidence for a gross-income assessment. A tax computation is only needed where that lender still uses the tax return. The FAQ’s page explains each document.