Turn on the CIS features in Accounting to: - Record your CIS registration details
- Add CIS ledger accounts to your chart of accounts
- Add CIS options to contact records to allow you to set up contacts as contractors or subcontractors
- Produce CIS transactions and reports
 TIP: Once CIS activation occurs, the options will always be available on your contacts and chart of accounts.
Activate CIS When you activate CIS for your business, we'l add new CIS ledger accounts to your chart of accounts. Keep to the ledger accounts we’ve created or for more detailed reporting, create your own additional ledger accounts. Once you've set up your CIS contacts too, you'll start to see CIS deductions automatically applied to your transactions. Make sure you have permission to update your financial settings and activate CIS. You’ll need to be a user with Full Access. - Select Settings, then Business Settings.
- Under Financial Settings, select Construction Industry Scheme (CIS).
- Select I'm CIS Registered.
- Select whether you're a Contractor, Subcontractor, or both.
- Enter your Unique Taxpayer Reference (UTR).
- If you're a contractor, enter your Accounts Office Reference and Employer's PAYE Reference.
- If you're a subcontractor, select your Deduction Rate.
- Select Save.
CIS ledger accountsOnce CIS activation occurs, we will establish all necessary CIS ledger accounts for you and include them in your chart of accounts. We'll use the next available nominal code in the range for each section of your chart of accounts. For example, in the sales category, if 4910 is the last code used, we'll use 4911 for CIS Labour and 4912 for CIS Materials. Alternatively, if you want to do more detailed reporting, you can learn how to set up your own CIS ledger accounts. You might want to do this to report separately on different types of labour or materials. | Code | Ledger Name | Category | Category Group | VAT Rate | Used on | Description | | 4911 | CIS Labour | Sales | Income | Standard 20% | Sales, Journals, Reports | Records income received from CIS labour on sales invoices. | | 4912 | CIS Materials | Sales | Income | Standard 20% | Sales, Journals, Reports | Records income received from CIS materials on sales invoices. | | | The CIS Tax Asset ledger accounts | | | | | Used to record the expected CIS amount deducted reduce the amount owed on the invoice. | | 1131 | CIS Tax Asset Withheld | Current Assets | Asset | No VAT | Journals, Reports | This function records the CIS amount deducted from a sales invoice, representing the anticipated withholding amount, providing a comprehensive view of your CIS deductions | | 1132 | CIS Tax Asset Realised | Current Assets | Asset | No VAT | Journals, Reports |
When you pay the invoice, the system moves the CIS amount from the Withheld account to the Realised account, indicating the total amount of CIS that has actually been withheld.
| | Code | Ledger Name | Category | Category Group | VAT Rate | Visibility | Description | | 5111 | CIS Labour Expense | Direct Expenses | Expenditure | Standard 20% | Purchases, Journals, Reports | Records CIS labour charged on subcontractor invoices. | | 5112 | CIS Materials Purchased | Direct Expenses | Expenditure | Standard 20% | Purchases, Journals, Reports | Records CIS materials charged on subcontractor invoices. | | | The CIS Tax Liability ledger accounts | | | | | Used to record the amount of CIS amount withheld, letting you see your total liability at a glance. | | 2501 | CIS Tax Liability | Current Liability | Liability | No VAT | Journals, Reports | This records the amount of CIS deducted before the invoice is paid, representing the amount you expect to withhold from the subcontractor. | | 2502 | CIS Tax Liability Realised | Current Liability | Liability | No VAT | Other Payments, Journals, Reports | When you pay the invoice, the system automatically transfers the CIS amount from the CIS Tax Liability account to the CIS Tax Liability Realised account, showing your actual liability amount. | [BCB:299:UKI - Personal content block - Dane:ECB] [BCB:302:UKI - Search override - Accounting UK:ECB]
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