Net vs Gross Pay (CIS)

Short Definition: Difference between total earnings and amount received after deductions.

Long Definition: Gross pay is the total amount a subcontractor earns before any deductions, while net pay is the amount received after CIS tax has been deducted. Understanding this difference is essential for managing cash flow, especially as CIS deductions can significantly reduce immediate income. Contractors must clearly show both figures in payment statements to ensure transparency.