The Construction Industry Scheme (CIS) is for contractors and subcontractors working in construction. The scheme is a method of withholding tax and national insurance contributions and passing them to HMRC. Contractors are responsible for calculating and deducting the payments due to HMRC on behalf of a subcontractor.
By turning on this feature QuickBooks will calculate your CIS deductions, track your CIS withheld or suffered amounts and create the necessary reports for HMRC.
To turn on CIS:
Once you turn on CIS:
Please know, you can't turn CIS off. Don't worry, you can stop using it anytime you like. We keep the accounts and reports around so your records are straight.
To add a contractor:
To add a subcontractor:
Creating a CIS transaction in QuickBooks is much like creating a normal transaction. With CIS turned on, we'll calculate everything for you.
To record paying a subcontractor, create a bill or expense. When creating your transaction, select your subcontractor, QuickBooks will use their CIS rate to calculate the CIS to deduct (CIS withheld). If materials are a part of this transaction, you can add these on here too.
Don't forget to enter the full (gross) amounts for each item. QuickBooks will do the calculations for you.
Subcontractors will create an invoice or sales receipt when receiving money from a contractor. Select the contractor from the top of the page and QuickBooks will use your CIS rate to calculate the CIS to deduct (CIS suffered). If you're charging for materials on this job, you can add these too.
It's possible to match or add CIS transactions using your bank feeds. When downloading bank data we'll try to find a match with any transactions you created manually. If there isn't one you can add it.