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Can AI help with CIS?
Short answer
Yes, with the admin around CIS, but not the HMRC parts. AI can draft invoices that split labour from materials, check monthly deduction statements against your records, and explain the rules in plain English. Contractors still have to register, verify subcontractors with HMRC, make the right deductions and file monthly returns. Use HMRC-recognised software or an accountant for the filing.
Where AI helps
- Invoices: ask it to lay out labour and materials separately. The CIS deduction is worked out on labour, so a clear split stops you losing money. Try our invoice template and CIS calculator.
- Checking statements: paste the figures (not names or UTRs into a personal account) and ask it to compare your invoices with the deductions shown.
- Explaining letters: ask it to summarise an HMRC letter in plain English, then check the summary against the letter.
- Chasing paperwork: draft a polite email asking a contractor for a missing statement.
What AI can't do for you
GOV.UK says a CIS contractor must:
- register before taking on the first subcontractor,
- check whether the person should be an employee instead,
- verify subcontractors with HMRC,
- make deductions and pay them to HMRC,
- file monthly returns and keep full records, and
- tell HMRC about changes to the business.
A chatbot can't verify a subcontractor or file a return. Accounting apps with CIS features, or your accountant, do that.
The rates
Registered subcontractors have 20% deducted, unregistered 30%, and those with gross payment status 0%. Read our CIS guide for subcontractors for how the deduction is worked out.
Related questions
Can ChatGPT do my CIS return?
No. It can help you get the figures ready, but the monthly return goes to HMRC through its online service or CIS-capable software.
Should I put UTRs into ChatGPT?
Not into a personal account. Use initials or job numbers instead. See can I put customer data into ChatGPT?
Sources
Checked 17 October 2026. Rules and prices change, so check the source before you rely on it. This is general information, not legal, tax or financial advice.
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