How can I add CIS deductible categories to my chart of accounts? I wish to track the various CIS trades sales and purchases in QB

Hi there, Richard W.

I can share some information about how CIS works in QuickBooks.

Once you've turned on the Construction Industry Scheme (CIS) feature in the program, we'll automatically create the CIS accounts that you'll be using to track your CIS transactions. Additionally, QuickBooks automatically tracks the CIS deductions as you create the transactions.

You can follow these simple steps in turning  the CIS feature on (if you haven't turned it on):
 

1. Click the Gear icon
2. Choose  Company Settings or Account and Settings.
3. Go to Advanced.
4. Select Construction Industry Scheme (CIS), then click the Edit icon.
5. Enter your information, then click Save.

Once done, you'll just have to select the appropriate account to be used in tracking your CIS trades sales and purchases (see below):

Here's are some articles that you can read to be guided in creating and tracking your CIS transactions:

• CIS in QuickBooks Online

• Record Deductions Suffered under CIS

If I can be of any additional assistance, please don't hesitate to leave a comment below. Have a pleasant day ahead.

I need to be able to separately track the various trades services. So I wish to be able to track the CIS Cost of Sales and Income payments made to plasterers, painters, labourers, brick layers, electricians, plumbers etc. I currently cannot create separate CIS categories in my chart of accounts even if I make them a sub account of the CIS cost of sales.

the only CIS separation available are the CIS rates. 

Hello there, Richard W.

Aside from the CIS rates, we have a way in QuickBooks Online to separate the CIS Cost of Sales and Income payments by categories. We can create sub-accounts and assign it to the items you want to use for the transaction.

To create sub-accounts, you can follow the steps in this article: Create subaccounts in your chart of accounts in QuickBooks Online.

If you're unsure of the accounts to set up, I'd recommend reaching out to your accountant.

After creating the sub-accounts, you can assign it to the items:

1. Click the Gear icon in the upper-right corner and select Products and services.
2. Look for an existing item and click Edit.
   You can also click New and select Service or Non-inventory.
3. Enter the sub-accounts in the Income account and the Expense account fields.
4. Click Save and close.

Here's a reference when creating items: Add product and service items to QuickBooks Online.

Then, you can already use this items wen creating transactions. 

Again, situation like this requires an assistance of an accounting professional. They know what's the best setup for you and your books.

Feel free to get back to us if you need anything else. Have a great day!

When you input a service using the QB Generated CIS Cost Of Sales Category you automatically get a CIS reduction generated. 

When creating a sub account of a CIS account this doesn’t happen. Making that new category / sub account unfit for purpose. I tried it before seeking help as it seemed obvious to make the various trades a sub account of the relevant CIS COS.

Richard W

Did you ever get an answer or find a solution in Quickbooks to your CIS COS sub account requirement?

I would be interested to know the solution - I too am trying to record CIS in separately reportable accounts.

Regards,

Peter R

Dear Quickbooks

It is a shame that in providing the ability to track CIS you have disabled the ability to track income and expenses by anything other than simply CIS labour and material amounts being meaningless to anything other than the absolute basic in Job Costing or Income/Expense category tracking.

A more sophisticated approach to CIS management 'as well as' the existing reporting abilities would have been preferable and hopefully will be in the future.

How do I account for recharged expenses on QBO for CIS??

When creating an invoice, the CIS is removed from the labour element, however when adding the recharged expenses (accommodation and mileage) the system is not deducting the CIS??

Only labour is CIS deductible. Materials, parking, accommodation and general expenses are not subject to CIS tax deduction.

Thank you for your reply, but unfortunately you are incorrect. It is a common misconception that CIS is only deductible on the labour element -  if the subcontractor invoices for accommodation, travel and subsistence expenses then these also need to have the tax deducted. 

Only direct expenses (materials and tool hire) are not deductible for CIS.