Before deducting CIS and VAT reverse charge from subcontractor invoices, ensure you've set up CIS for your business.

You'll then need to add their CIS information to the supplier record. To set up a new subcontractor, read this article. 

1. From Contacts, select Suppliers.
2.  Open the relevant supplier and select the CIS tab.
3. Select the pencil icon, then tick-Registered contractor in the CIS scheme and fill in the required information.

   1. ▼See a breakdown of the required information

      • Registered CIS Name - Name subcontractor registered with HMRC; for sole traders, first and surname; for partnerships, partnership name
      • Deduction Rate - Need's to match the rate verified by HMRC. It's used to apply CIS deductions on purchase transactions. If the rate changes, update it before entering new purchase transactions
      • Verify Details at HMRC- Select this link to verify the subcontractor using HMRCs free online CIS service

      NOTE:

      If verifying the subcontractors details returns an 'unmatched' error, read this HMRC guidance for further information.

      • Unique Taxpayer Reference  - The UTR for the subcontractor. Only mandatory for 0.00% and 20.00% deduction rates
      • Verification No. - The Subcontractor's HMRC CIS Verification Number. Only mandatory for the 30.00% deduction rate
      • Organisation Type - Select from: Sole Trader, Partnership, Limited Company or Trust
      • National Insurance No. - The Subcontractor's National Insurance Number. It's nine characters and made up of letters and numbers in the following format: QQ 12 34 56 A. Optional but recommended for quicker CIS 300 Return processing; include if known
      • Company Registration No. - For Partnerships and Limited Companies enter the Company Registration Number. It's eight numbers, or two letters followed by six numbers. Optional but recommended for quicker CIS 300 Return processing; include if known
4. Select Save select the Options tab.
5. Next to Account Details, select the pencil icon.
6. Change the Account Default to CIS Labour Expense.
7. If applicable, enter the subcontractors VAT Number and tick VAT Reverse Charge. 
8. Review the information and then select Save.