About the Construction Industry Scheme (CIS) in Accounting

  • The Construction Industry Scheme (CIS) is a HMRC tax requirement for contractors and subcontractors.
  • If you’re a contractor, subcontractor or both, use Accounting to easily record CIS for both customers and suppliers, report to HMRC and remain compliant.
  • Automatically calculate and show CIS deductions on your sales and purchase invoices, giving you confidence that deductions have been made correctly.
  • Report accurately on your CIS liability and submit CIS returns to HMRC securely.

  • If you’re a CIS contractor, send monthly returns and produce payment and deduction statements for your subcontractors.
  • 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, you can record CIS as either a subcontractor, contractor or both.
  • Learn how to use the CIS feature if you currently enter CIS into the system manually

Key Features

CIS for contractors

  • We'll calculate the CIS withheld on transactions and post the withheld tax correctly when processing payments.

  • Identify which contacts are subcontractors so the correct deductions are applied to your transactions.
  • Use the link from the CIS tab within the subcontractor's supplier record to verify their status with HMRC.

  • Create and submit your CIS 300 Monthly Return to HMRC.
  • Create individual monthly payment and deduction statements to send to your subcontractors.

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.