Kitchen Fitters — CIS, Expenses, and Tax Guide

Kitchen fitting is skilled, demanding work — and if you're doing it as a self-employed sole trader, it comes with a fair amount of tax admin too. From navigating the Construction Industry Scheme (CIS) on some jobs to tracking expenses across multiple projects, getting your finances right is just as important as getting the cabinets level.

This guide covers everything self-employed kitchen fitters need to know about tax in the UK, including CIS obligations, allowable expenses, and practical tips for the 2025/26 tax year.

Does CIS Apply to Kitchen Fitting?

The short answer is: it depends on who you're working for.

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The Construction Industry Scheme covers work that qualifies as "construction operations" and is carried out for a contractor. Kitchen fitting — which typically involves carpentry, plumbing connections, electrical work, tiling, and worktop installation — falls squarely within HMRC's definition of construction operations.

CIS applies when:

• You're subcontracting to a builder, main contractor, or property developer
• You're working for a kitchen company that engages you as a subcontractor
• The work is part of a larger construction or renovation project for a commercial client

CIS doesn't apply when:

• You're working directly for a homeowner (domestic customer)
• You're employed by a company (in which case you'd be on PAYE)

Many kitchen fitters split their time between CIS work (fitting kitchens for builders or kitchen companies) and private work (installing kitchens directly for homeowners). You need to manage both types of income, but the CIS rules only affect the former.

For a thorough explanation of the scheme, read our CIS subcontractors guide, and if you haven't registered yet, our CIS registration guide takes you through the process.

How CIS Deductions Work for Kitchen Fitters

When you work under CIS, the contractor deducts tax from your payments before paying you:

• Registered with CIS: 20% deduction on labour
• Not registered: 30% deduction on labour
• Gross payment status: 0% deduction — you receive full payment

The deductions only apply to the labour element of your invoice. Materials are excluded, which is important for kitchen fitters because material costs can be a significant part of the job.

Getting the labour/materials split right on your invoices is essential. If you supply worktops, units, tiles, adhesives, or other materials, list them separately from your labour charge. If you don't break it down, the contractor may deduct CIS from the full amount, and you'll be out of pocket until you can reclaim the overpayment through your Self Assessment.

Keep every receipt for materials purchased for CIS jobs. HMRC may ask you to prove the materials claim, and without receipts, you'll have no evidence.

To qualify for gross payment status — which gives you the best cash flow — you generally need at least 12 months in business, a clean compliance record with HMRC, and annual turnover above £30,000 (excluding materials).

Income Tax and National Insurance

Whether your work is under CIS or not, you pay Income Tax on your total taxable profits. For the 2025/26 tax year:

• Personal allowance: £12,570 (tax-free)
• Basic rate: 20% on profits between £12,570 and £50,270
• Higher rate: 40% on profits between £50,270 and £125,140
• Additional rate: 45% above £125,140

National Insurance is charged in addition: Class 2 at £3.45 per week on profits over £12,570, and Class 4 at 6% on profits between £12,570 and £50,270, then 2% above that. Our National Insurance for sole traders guide provides the complete picture.

CIS deductions you've suffered during the year are credited against your tax bill when you file your Self Assessment. If the deductions exceed what you owe, you'll receive a refund. If you owe more than was deducted (common if you also have significant non-CIS income), you'll need to pay the balance.

VAT Considerations

If your annual turnover reaches £90,000, you must register for VAT. Kitchen fitters who work on high-value projects or maintain a busy schedule can reach this threshold, especially when material costs push up the overall turnover figure (even though materials also come with input VAT you can reclaim).

For CIS work involving VAT-registered contractors, the domestic reverse charge for construction services may apply. Under the reverse charge, you don't charge VAT on your invoice — instead, the contractor accounts for the VAT. This affects your cash flow because you can't collect VAT from the contractor, but you can still reclaim input VAT on your purchases.

Our VAT registration threshold guide covers the basics, but VAT in construction can be complex, so professional advice is worthwhile if you're approaching the threshold.

Allowable Expenses for Kitchen Fitters

Kitchen fitters incur a wide range of costs, and claiming them all properly is the most effective way to reduce your tax bill.

Tools and equipment:

• Power tools: circular saws, jigsaws, routers, mitre saws, drills, impact drivers
• Hand tools: chisels, planes, spirit levels, squares, tape measures, clamps
• Worktop jigs and templates
• Tile cutters and adhesive guns
• Pipe cutters and plumbing tools
• Electrical testing equipment (if you do electrical connections)
• Safety equipment: dust masks, goggles, ear defenders, knee pads, safety boots

Vehicle costs:

• Van running costs (fuel, insurance, road tax, servicing, MOT) or simplified mileage at 45p per mile for the first 10,000 business miles
• Van lease or hire purchase payments (business proportion)
• Vehicle signage
• Roof racks, internal racking, and storage systems

Materials (for non-CIS private work):

• Kitchen units, worktops, and splashbacks
• Plumbing fittings, pipes, and connectors
• Electrical sockets and wiring (if qualified)
• Tiles, adhesive, grout, and sealant
• Handles, hinges, and fixings
• Silicone, filler, and finishing materials

For CIS work, materials are listed separately on invoices and aren't subject to CIS deductions, but they're still a cost of the job that reduces your taxable profit.

Business overheads:

• Public liability insurance
• Professional indemnity insurance
• Employer's liability insurance (if you have employees or apprentices)
• Accountancy and bookkeeping fees
• Phone and internet costs (business proportion)
• Website, social media advertising, and marketing
• Trade body memberships
• Training courses and qualifications

Working from home:

• Admin time, invoicing, and job planning done at home qualifies for a home-use deduction
• Simplified flat rate (based on hours worked) or actual costs method

For the complete rundown, see our sole trader expenses guide.

Record-Keeping for CIS and Self Assessment

Good record-keeping is doubly important for kitchen fitters who work under CIS. You need to keep:

• CIS payment and deduction statements from every contractor — these prove the tax already deducted and are essential for your Self Assessment
• Invoices with clear labour and materials breakdowns for every CIS job
• Receipts for all materials, tools, and business expenses
• Records of all non-CIS income from private domestic customers
• Mileage logs if claiming vehicle expenses at the simplified rate
• Bank statements covering all business transactions

HMRC requires records to be kept for at least five years after the 31 January filing deadline for the relevant tax year. If you're investigated, having comprehensive records is your strongest defence.

Accounted handles CIS and non-CIS income side by side, making it easy to track deductions, categorise expenses, and prepare for Self Assessment. Penny, our AI bookkeeping assistant, can help you snap receipts, log mileage, and keep everything organised on the go — which is perfect when you're on-site all day and the last thing you want to do in the evening is paperwork.

With Making Tax Digital for Income Tax launching from April 2026 for those earning over £50,000, keeping digital records is becoming compulsory. Getting set up with the right software now means a smoother transition.

Managing Cash Flow and Tax Payments

Kitchen fitting jobs often involve significant upfront costs for materials, especially on private work where you're supplying everything. Managing cash flow well is crucial:

Get deposits. For private jobs, take a deposit before starting — typically 25-50% of the total job value. This covers your material costs and demonstrates the client's commitment.

Stage payments on larger jobs. For a full kitchen installation that might take a week or more, agree payment milestones: deposit, mid-project payment, and final balance on completion.

Separate your CIS and non-CIS income mentally. CIS work has tax deducted at source (usually 20%), so your take-home is already net of some tax. Non-CIS private work pays you gross, meaning you need to set aside money for tax yourself. A good rule is to transfer 25-30% of gross private income into a savings account.

Keep CIS statements safe. These are your proof of tax already paid. Photograph or scan them immediately and store them digitally. Losing them means a potential delay in getting credit for the deductions.

Plan for payments on account. If your Self Assessment bill exceeds £1,000, HMRC will require payments on account in January and July. This can be a significant cash flow hit, especially in your first or second year.

Tips for Growing Your Kitchen Fitting Business

Build a strong reputation. Word of mouth is powerful in the trades. Deliver quality work on time, and referrals will follow. Encourage satisfied clients to leave Google reviews or testimonials for your website.

Photograph your work. A portfolio of completed kitchens is your best marketing tool. Take before-and-after photos of every project (with the client's permission) for your website and social media. The cost of a decent camera or even professional photography is tax-deductible.

Know your worth. Kitchen fitting is skilled work that requires experience, precision, and problem-solving. Don't undervalue your labour — especially on private work where you set the price. Factor in your time, expertise, travel, and overheads when quoting.

Consider your business structure. Most kitchen fitters start as sole traders. As profits grow beyond £40,000-£50,000, it may be worth exploring a limited company structure for potential tax savings. The right time to switch depends on your individual circumstances, so get tailored advice.

Stay qualified and insured. Keeping your skills up to date — especially if you do electrical or plumbing connections — protects your reputation and your clients. Training costs are deductible, and insurers may offer better rates if you hold relevant qualifications.

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Related reading:

• CIS for Subcontractors — The Complete Guide
• How to Register for CIS
• Sole Trader Expenses — The Complete List

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Accounted helps UK sole traders stay on top of their bookkeeping and tax. Start your free 30-day trial at getaccounted.co.uk.

Related Reading

• CIS Tax Refunds — How to Claim Back Overpaid Tax
• Builders and General Contractors — CIS and Tax Guide

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