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How to activate CIS in Sage 50 Accounts

Created on  | Last modified on 

Summary

If you carry out construction work in the UK as a contractor and you're registered with the Construction Industry Scheme (CIS), the Sage 50 CIS module makes it easy to manage your subcontractors' tax. Before you can start using the Sage 50 CIS module, you need to activate it in your software.

Resolution

Check your version

To activate the Sage 50 CIS v2 module you must first ensure that you're using Sage 50 Accounts v22.0.10.368 or above:

  1. Help > About > Program Details > Version Number > check your current version number.
  2. If your software version is lower than v22.0.10.368, to install the latest updates > Help > Check for Updates > follow the on-screen prompts.

You can also download the latest updates from sage.co.uk/au


To activate Sage 50 CIS for the first time

NOTE: If you access your data from more than one computer across a network or via Sage Drive, you must activate the CIS module on each computer before you enter subcontractor transactions. You must be connected to the Internet to activate the CIS module.

  1. File > Back up > take a backup of your data.
  2. Tools > Activation > Enable Construction Industry Scheme.
  3. Next > if required, choose a nominal code for each CIS option. The default nominal codes are as follows:

    Nominal code Name Description
    6000 CIS Labour Use this nominal code to post labour transactions.
    6001 CIS Materials Use this nominal code to post materials transactions.
    6002 CIS Other Labour Use this nominal code for any labour you want to differentiate from the main labour nominal code. For example, you may want to split labour done in the UK from labour done in Europe.
    6100 CIS Other Materials Use this nominal code for any materials you want to differentiate from the main materials nominal code. For example, you may want to split materials used for the job to tools for the job. NOTE: When you record a subcontractor invoice you should only include materials if they are within the scope of CIS. For more information about this please contact HMRC.
    2101 CIS Tax Control When you pay the CIS labour invoices the tax is automatically posted to this nominal code.
    2102 CIS Tax Liability When you submit the CIS return the tax is automatically transferred from the CIS tax control account into the tax liability. This is so you can then post the payments to HMRC using this nominal code.
    8200 CIS CITB Levy Use this nominal code to record any CITB Levy.
  4. Next > enter your company details.

    NOTE: These details are passed to HM Revenue & Customs when you submit electronic information to them using the software's e-Submission feature.

    Name Description
    Status Select the type of business you operate.
    Unique Tax Reference Sometimes referred to as UTR. It is supplied by HM Revenue & Customs (HMRC).
    It is found on your existing voucher (CIS23, CIS24, CIS25). It is the first ten digits of the tax reference field on the bottom left of the voucher.
    Employer's PAYE Ref Sometimes referred to as EMPREF. It is supplied by HM Revenue & Customs (HMRC).
    EMPREF is also known as the PAYE Reference and can be found on the front of the payment booklet issued to every contractor. It comprises a 3 digit office reference, a forward slash and up to ten characters or numbers. For example 913/WZ51258.
    Accounts Office Ref Sometimes referred to as AoREF. It is supplied by HM Revenue & Customs (HMRC).
    AoREF can be obtained from the P30B paying-in book or the letter issued in its place. It comprises a tax office number of up to three digits (using, where necessary leading zeros), followed by the letter P and another letter. Finally there is a series of eight numbers. For example 131PE00045678 or 001PF23456789.
  5. Next > enter the e-submission details as follows:

    NOTE: These details are passed to HM Revenue & Customs when you submit electronic information to them using the software's e-Submission feature. If you don't know your User ID or Password, please contact HMRC.

    Name Description
    User ID This is the User ID you received when you registered with the Government Gateway.
    Password This is the Activation PIN you received when you registered with the Government Gateway. For security purposes the password is masked when you enter the information. It appears as a line of asterisks.
    Confirm Password Please confirm the Activation PIN you received when you registered with the Government Gateway. For security purposes the password is masked when you enter the information. It appears as a line of asterisks.
    Forenames Enter a contact name for your company.
    Surname Enter a contact name for your company.
    Telephone Enter a contact telephone number.
    Email If your company uses email, enter your email address here. If you have a number of email addresses, you should enter your main contact email address.
  6. Next > if prompted, enter your Sage 50 CIS serial number and activation key >Next.

    NOTE: You can find this information on the despatch note issued with your software. Alternatively, if you've a My Sage website login, you can find these online. For help setting up a My Sage account, please refer to article .

  7. If prompted, enter your Sage account number > OK > Continue.
  8. Finish > to check your CIS module is activated > Help > About > Features Enabled > check that CIS v2 shows Yes.

NOTE: If you're an accountant submitting on behalf of a client you must also ensure you complete the details within Settings > Company Preferences > Accountant.

You've now activated your Sage Accounts software for CIS. You can change any of these details within Settings > Company Preferences > CIS.


To upgrade to the new Sage 50 CIS module - Sage 50 Accounts subscription

If you used the original Sage 50 CIS and you purchased the new CIS v2 module for Sage 50 Accounts v22, the new features are available once you install the latest updates to your software.

To check your new CIS v2 module is activated:

  • Help > About > Features Enabled > check that CIS v2 shows Yes.

NOTE: If you access your data on more than one computer across a network or via Sage Drive, you must install the update on each computer before you enter subcontractor transactions.


To upgrade to the new Sage 50 CIS module - Sage 50 Accounts without subscription

If you were using the original Sage 50 CIS module and you purchased the new CIS module for Sage 50 Accounts v22, after you install the latest updates to your software you must activate the new module.

If you access your data from more than one computer across a network or via Sage Drive, you must activate the new CIS module on each computer before you enter subcontractor transactions. You must be connected to the Internet to activate the CIS module.

  1. File > Back up > take a backup of your data.
  2. Tools > Activation > Upgrade Construction Industry Scheme > Next.
  3. Enter your new Sage 50 CIS serial number and activation key > Next.

    TIP:You can find your Sage 50 CIS serial number and activation key on the email you received when you purchased the CIS module, or by logging into My Sage.

  4. Enter your Sage account number > Continue > OK > Finish.
  5. To check your CIS module is activated > Help > About > Features Enabled > check that CIS v2 shows Yes.

 

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