CIS subcontractor mortgage
If you work under the Construction Industry Scheme, some lenders will assess you on your gross CIS pay using your CIS deduction statements and bank statements, rather than on the lower net profit on your tax return. Because tax is already deducted at source, this can be treated almost like employed income and can support a higher mortgage with as little as six to twelve months of history.
Why CIS is a special case
Under CIS you are self-employed, but the contractor who pays you deducts tax (commonly 20%) before you receive the money and reports it to HMRC. That creates a clean, verifiable income trail. A CIS-friendly lender uses your gross pay from the CIS statements, which is normally higher than the net profit figure your accountant reports after deducting expenses. The result is often more usable income, sooner.
Gross CIS pay vs net profit
| Basis | Figure used | Effect |
|---|---|---|
| Net self-employed profit | Income after expenses on your tax return | Lower figure, usually needs two to three years |
| Gross CIS pay | Gross pay from CIS deduction statements | Higher figure, can need only 6 to 12 months |
Indicative comparison. Whether gross CIS pay can be used, and over what period, varies by lender.
What lenders want to see
- Recent CIS payment and deduction statements (often 6 to 12 months).
- Bank statements showing the CIS payments arriving.
- Confirmation of your trade and that work is ongoing.
- A clean credit history and a normal deposit.
Common questions
Am I employed or self-employed under CIS?
Under the Construction Industry Scheme you are self-employed, but your contractor deducts tax at source (commonly 20%) before paying you. That deduction is why some CIS workers can be assessed more like an employee, using gross pay, rather than waiting for finalised accounts.
What income will a CIS-friendly lender use?
Many use your gross CIS pay, evidenced by your CIS payment and deduction statements plus bank statements, often averaged over a recent period. That gross figure is usually higher than the net profit on your tax return after expenses, so it can support a larger mortgage.
Do I still need years of accounts?
Not always. Because CIS deductions create a clear income record, some lenders accept a relatively short history, often around 6 to 12 months of CIS statements, rather than two or three years of accounts.
What if I have both CIS and other self-employed income?
That is common and workable, but it needs a lender comfortable combining the two. This is a frequent reason CIS applications are declined at a high-street bank yet accepted elsewhere.
Founder, MortgageExplained, MortgageExplained
Adam spent nearly a decade as a mortgage adviser at Just Mortgages, with further experience in commercial finance. He is CeMAP and CF qualified. He built MortgageExplained to do one thing well: explain mortgages in plain English, then introduce you to a regulated broker when you are ready. Every page is written and reviewed by Adam.
Last reviewed: 29 June 2026