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Add contractors or subcontractors in QuickBooks

by Intuit•36• Updated 1 month ago

Learn how to add, verify, and edit both contractors and subcontractors in your account.


Before you begin

In QuickBooks Online, it's essential to set up contractors and subcontractors correctly for accurate Construction Industry Scheme (CIS) reporting. Understanding how QuickBooks categorises these roles is key:

  • A contractor, the business or person paying for construction services, is set up as a Customer.
  • A subcontractor, the business or person being paid for their work, is set up as a Supplier.
Before adding contractors or subcontractors, you must enable the Construction Industry Scheme (CIS) in your QuickBooks settings.

Add a CIS contractor

You'll add a contractor as a 'Customer' in QuickBooks. This is because they are the client who has commissioned the work. All your CIS-related sales invoices and transactions for this project will be linked to their customer profile, ensuring your sales and CIS reporting are accurate.

  1. Follow this link to complete the steps in product Open this link in a new window
  2. Select Add a contractor.
  3. Enter the customer's details.
  4. In the Additional info section, check the Is CIS contractor box.
  5. Enter their VAT Registration Number and UTR Taxpayer Reference. 
  6. Select Save.

The contractor will now appear in your customer list.


Add and verify subcontractors

A subcontractor is added as a 'Supplier' because you will be paying them for the services they provide on a project. Recording them as a supplier allows you to track all your payments and CIS deductions accurately within your expenses.

  1. Follow this link to complete the steps in product Open this link in a new window
  2. Select Add supplier.
  3. Enter the supplier's details in the Supplier window.
  4. In the Additional info section, tick the This customer is a CIS subcontractor checkbox.
  5. Enter the following information:
    • Unique Taxpayer Reference
    • National Insurance number
    • Verification number (if you already have it)
  6. Select Save.

The subcontractor will now appear in the supplier list.

  1. Follow this link to complete the steps in product Open this link in a new window
  2. Select the name of the subcontractor you need to verify.
  3. From the Supplier details tab, select Verify.
  4. Follow the on-screen prompts to sign in to your HMRC Government Gateway account.

Once the process is complete, QuickBooks will automatically update the subcontractor's details with the official verification number and tax treatment.


Edit contractor or subcontractor details

It's important to keep contractor and subcontractor information up to date. You may need to edit a profile to update contact details, change a VAT number, or correct a UTR. Maintaining accurate records is essential for correct invoicing, payments, and filing your CIS returns.

  1. Follow this link to complete the steps in product Open this link in a new window
  2. Select the contractor's name to open their details. You can also enter a New transaction from here.
  3. Select Edit.
  4. Make the necessary changes.
  5. Select Save.
  1. Follow this link to complete the steps in product Open this link in a new window
  2. Select the subcontractor's name to open their details. You can also enter a New transaction from here.
  3. Select Edit.
  4. Make the necessary changes.
  5. Select Save.

What's next?

Now that you have set up your contractors and subcontractors, you can start creating CIS transactions.

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