MTD ON CIS

You'll need to enable the CIS feature first in your settings so that QuickBooks can calculate the tax deduction. Next, add your contractor as a customer, since they are the ones who commissioned the work.

Here's how to turn on CIS in your settings:

1. Click the Gear icon, select Account and settings, and choose the Advanced tab.
2. In the Construction Industry Scheme (CIS) section, select Edit.
3. Turn on the Enable CIS switch.
4. Enter your company's UTR no., Employer’s PAYE reference no., and Accounts Office reference no.
5. If you also operate as a subcontractor, select the I am a CIS subcontractor checkbox and choose your CIS rate from the dropdown menu.
6. When finished, click Save.

To add your contractor as a customer, follow these steps:

1. Go to the All apps menu, select Customer Hub, then choose Customers.
2. Select New customer, and enter the customer's details.
3. In the Additional info section, select the Is CIS contractor checkbox.
4. Enter their VAT Registration Number and Unique Taxpayer Reference.
5. Once finished, select Save.

To record the invoice amount and the CIS tax deduction, and to match the net payment in your bank feed, simply follow Step 3 for creating an invoice and Step 4 for matching payments received from contractors in this article: Setting up CIS Payments and Returns in QuickBooks.

Please let us know if you need further assistance.