If a subcontractor hasn't worked for you before, or in the previous two tax years, you must check with HMRC to see if they're registered for CIS. This verification process determines if you need to make deductions when you pay the subcontractor. Deduction rates can be:

• 30% for subcontractors who aren't CIS registered.
• 20% for subcontractors who are CIS registered.
• 0% for subcontractors who have gross payment status.

Once you activate the Sage 50 CIS v2 module and create your subcontractor records, it's easy to verify the subcontractor details with HMRC. Let's get started.

Verify subcontractors online in Sage 50 Accounts

1. Click Subcontractors then click Verify.
2. Click the subcontractors you want to verify, then click Next.
   
    NOTE: If a Submission Details Incomplete window appears, to see what's missing, click Details. Then click OK and enter the missing details in Settings, Company Preferences, CIS.
   
   
3. If a subcontractor is flagged as having missing information, to view the details click Details. To remove a subcontractor from the verification, click the required account then click Verify Later.
4. Click Next, then click Continue. Check that your user ID and company details are correct, then click Submit.
   
   The submission time depends on how busy the Government Gateway is and the speed of your Internet connection.
   
   
5. To view details of the submission, click the link provided.
6. Click Close, check that a tax treatment has been applied to each verified subcontractor, then click Finish.

 NOTE: If the submission isn't successful, a submission failure message appears. To view the details click the link provided. Before you submit the information again, you must correct the problems identified.

If you verify subcontractors via the HMRC CIS online service

If you verify your subcontractors using the HMRC CIS online service, you must then enter the verification details into your subcontractor records.

1. Click Subcontractors, double-click the required subcontractor, then click CIS.
2. Under Verification status enter the required information, click Save, then click Close.

  NOTE: Be vigilant when checking Subcontractor details - Try things like removing the space between first name and surname

[BCB:184:Emma Footer CB:ECB] [BCB:103:Limitless - 50 Accounts - Construction Industry Scheme:ECB]