A contractor usually works directly with a client on a project. A subcontractor, normally hired by a contractor, reports to the contractor and helps them complete a project.
We'll show you how to add both in QuickBooks Online but before we do, make sure that CIS is switched on first.
To add a contractor
- Go to Sales and select Customers (Take me there).
- Select New customer.
- Enter the customer's details in the Customer window.
- Select the Is CIS contractor checkbox in the Additional info section.
- Enter their VAT Registration Number.
- Enter their UTR number (Unique Taxpayer Reference).
- Select Save. Your contractor will now appear in the customer list.
To add a subcontractor
- Go to Expenses and select Suppliers (Take me there).
- Select New supplier.
- Enter the supplier's details in the Supplier window.
- Select the Is subcontractor checkbox in the Additional info section.
- Enter their UTR number (Unique Taxpayer Reference).
- Enter their National Insurance number (NI).
- Enter their Verification number. HMRC will tell you all the information you need when you verify your subcontractor, including their CIS rate.
- Select Save. The subcontractor will now appear in the supplier list.
To make changes to their info
To make changes to personal details such as address, phone number and more, select the name of the contractor/subcontractor to view their full profile and see more information about them. Select Edit to make changes.
You can also select New transaction to enter a new transaction from here.
Now that all your contractors and subcontractors are added in QuickBooks, here's how to create CIS transactions.
Check out the CIS guide for more help.