- The Construction Industry Scheme (CIS) is a HMRC tax requirement for contractors and subcontractors.
- If you’re a subcontractor, use Accounting Start to easily record CIS for your customers and remain compliant.
- Automatically calculate and show CIS deductions on your sales invoices, giving you confidence that deductions have been made correctly.
Report accurately on your CIS liability.
Subcontractors can produce a CIS Suffered Report to view CIS payments withheld by contractors in a selected period.
What are HMRC Guidelines?
- Under CIS, contractors deduct money from a subcontractor’s payments and pass it to HM Revenue and Customs (HMRC).
- The deductions count as advance payments towards the subcontractor’s tax and National Insurance.
- If you're a contractor, you must register for the scheme.
- If you're a subcontractor you don’t have to register, but deductions are taken from your payments at a higher rate if you're not registered.
- For more information visit www.gov.uk/what-is-the-construction-industry-scheme
Things to consider
- If you want to import your own chart of accounts, you must do this before you activate CIS. Once activated, we create additional CIS ledger accounts and disable the import chart of accounts feature.
- If you're using Accounting Start, you can only use CIS as a subcontractor. This is because Start doesn’t support purchase invoices.
- Learn how to use the CIS feature if you currently enter CIS into the system manually
CIS for subcontractors
We'll calculate and apply deductions on transactions and account for the amount paid and CIS withheld by your contractors.
- Identify contractors within your contacts so the correct deductions are applied to your transactions.
- Create a CIS Suffered report, over any given period, to see what deductions have been made on your behalf by your contractors.
- CIS opening balances
- Transitioning from manually recording CIS tax withheld to using the CIS feature