What you need to know

• Make sure you activate CIS before you set up CIS on your contacts
• Configure contacts as CIS contractors to enable CIS deductions from invoices. The necessary ledger accounts are exclusive to CIS contacts
• Enable reverse charge VAT for applicable VAT registered contacts to ensure correct VAT application on their invoices. Read more about reverse charge VAT for CIS
• The system doesn't automatically update existing sales invoices for an existing contact to apply CIS deductions
• Once you've set up a contact for CIS, you can't disable this setting. If your contact is no longer a contractor or subcontractor, you can send invoices without CIS deductions. Simply use the standard ledger accounts to avoid applying CIS deductions

• You can only set CIS on contacts with a UK address and currency set to Pound sterling

• Set a default CIS Labour account to prevent errors, as it's automatically selected
  
  

Set up a contact as a contractor (customer)

1. From Contacts, select Customers then New Customer. For an existing contact, select the pencil icon next to the contact.
2. For new contacts, add the contact details as required. For more information, see Create a customer contact.
3. From the Account Details or Options tab: Enable VAT Reverse Charge for VAT-registered contacts for appropriate invoices. Set the Account Default to a CIS Labour ledger account. This aids in preventing errors and ensures automatic CIS deduction on invoices. CIS ledger accounts are solely visible to CIS-registered contacts. For existing contacts, find this on the Options tab.
4. From the CIS tab, check the CIS Registered checkbox. This indicates that the contact is using the CIS scheme, allowing you to select the appropriate ledger accounts.
5. Save the contact.