What you need to know

• Make sure you activate CIS for your business before you set up CIS on your contacts
• Set up contacts as CIS contractors to deduct CIS from invoices. The required categories are only available to CIS contacts
• Set VAT registered contacts to use reverse charge VAT, where applicable. This is you can apply VAT correctly to their invoices. Read more about reverse charge VAT and CIS >
• Existing sales invoices for an existing contact are not automatically updated to apply CIS deductions
• Once a contact is set up for CIS, you can't disable it. If your contact is no longer a contractor, you can still send invoices without CIS deductions. Just use the standard categories so that CIS deductions aren't applied
• You can only set CIS on contacts with a UK address and currency set to Pound sterling
• Consider setting the default category to a CIS Labour account. This is a good way to prevent errors, as the CIS category is always selected when creating an invoice

Set up contact as a contractor (customer)

1. From Contacts, select New Customer. For an existing contact, open the contact to edit.
2. For new contacts, add the contact details as required. For more information see Create a customer contact >
3. From the Contact Details or Options tab
   • VAT Reverse Charge. For VAT registered contacts this allows you to apply reverse charge VAT to the appropriate invoices
   • Set the Default Category to a CIS Labour category. This helps prevent errors and ensures CIS deductions appear on invoices. This is because the category is set automatically when you enter invoices. CIS categories are only visible to CIS registered contacts
   • For existing contacts, this is on the Options tab.
4. From the CIS tab, select CIS Registered checkbox. This indicates that the contact is using the CIS scheme and you can select the appropriate category.
5. Save the contact.

Create and send a CIS sales invoice to a contractor

Set up your own CIS ledger accounts

Create a customer contact