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As per , charges for labour, together with the materials supplied in the course of the supply of labour, should not be artificially separated to avoid applying the reverse charge to the supply of materials (in the same way that invoice splitting does not prevent payments from being caught by the CIS, see CISR14030).

Where the CIS deduction is only applied to that part of the payment not representing the direct cost of materials to the subcontractor (CISR15060), the reverse charge applies to the whole payment - i.e. the charges for labour and related materials are all subject to the reverse charge.

If a trader enters separate contracts, one for a supply of labour and the other for a supply of materials to be used in the course of the labour, the reverse charge will usually apply to both contracts (subject to the 5% disregard, see VATREVCON24000) as they will usually comprise a single supply for VAT purposes. (For more information on single and multiple supplies see VATSC11124.)

Supplies of construction materials on their own, or supplied with a service not subject to the construction reverse charge (e.g. a zero-rated service), are not subject to the construction reverse charge.