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Record Deductions Suffered under CIS

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.

QuickBooks Online Standard Payroll allows you to record your deductions suffered under CIS and submit the figures to HMRC. Before you start, make sure that CIS in turned on in your QuickBooks.

  1. In QuickBooks Online Standard Payroll, click on Payroll on the left menu and click Enter CIS Suffered on the Construction Industry Scheme dashboard tile.  Note: You can also enter CIS suffered in the Account and Settings menu by selecting the gear icon, then Payroll.
  2. On the CIS deductions panel, enter the current CIS deductions for the year to date in the Amount deducted box. You can click the “Fetch CIS suffered” button and we will collect the amount recorded in Quickbooks online .
  3. The Date for deduction calculation can be set if you wish you record CIS suffered deductions for a different tax period. It defaults to today’s date, which is the current tax period.
  4. Click Save and CIS suffered is created in your next EPS ready for submission.

To update CIS suffered, go to Employees on the left menu and Update CIS. To see previous records, click on See previous CIS records.

If you move your payroll from other software to Quickbooks Online Standard Payroll and have previously recorded CIS suffered deductions, then you will need to manually add these past CIS suffered entries.

To enter these past deductions:

  1. In QuickBooks Online Standard Payroll, click on Payroll on the left menu and click Enter CIS Suffered on the Construction Industry Scheme dashboard tile
  2. On the CIS deductions panel, change the Date for deduction Calculation to April 30th and enter the total amount deducted in April into the Amount Deducted box.
  3. Click Save and CIS suffered is created in your next EPS ready for submission
  4. Repeat this process for each tax period for the current tax year, up to the current period. Ensure that you enter the cumulative year to date CIS deduction amount each time. Your P32 Report will update each Tax Period with the CIS Suffered amount.
  5. Next, click on Taxes in the left menu and then click Payroll Tax.  You will see an EPS has been created for each past period that you submitted above. If you previously submitted EPSs to reclaim CIS Suffered in your previous payroll software, you will now need to delete the duplicated EPSs in Quickbooks Online Standard Payroll.
  6. To do this, click on one of the EPSs that is not required. This will open up a drawer with more information. Click the Trash icon in the top right corner to delete this submission.
  7. Repeat this process for all other EPSs that are not required.

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