Activate the CIS feature to report on CIS deductions, send statements to your suppliers and submit the CIS 300 return to HMRC.

• Once you've activated the CIS feature, these reports and returns only include invoices that you've entered using the new CIS ledger accounts and are for customer and supplier contacts with CIS enabled
• If you're part way through a month and have been recording your CIS tax withheld before you activated CIS, continue doing this until the end of the period, 5th of the month, before you start using the CIS module

How to start using CIS

It’s important you don’t have a mixture of payments recorded inside and outside of the CIS feature in the same reporting period. This is because the new reports and returns won't include CIS transactions that you entered using the CIS feature.

For example, you've already entered CIS invoices for June and want to start using the feature from July. You'll probably have invoices that your customers won't pay until mid-July. To manage this:

1. Continue to enter invoices for the rest of the period using your current method.
2. At the end of the period, 5 July, ensure you account for paid CIS invoices using your current method.
3. Use the new functionality to include any invoices still outstanding at the end of the period, 5 July, on your next return. To do this:
   1. Reverse each outstanding invoice with a credit note.
   2. Allocate the credit note to each outstanding invoice.
   3. Set up CIS to make sure your ledger accounts and contacts are correct.
   4. Re-enter each outstanding CIS invoice using a CIS labour ledger account.

4. Once you've set CIS up, you can start entering new CIS transactions. Follow our guide on how to create a CIS invoice.