Create and send a CIS sales invoice to a contractor

Create sales invoices for your CIS Contractors with CIS deductions and reverse charge VAT in Accounting Start.

• Set up CIS for your business to make sure the correct CIS categories are added to your chart of accounts
• Set up your CIS contacts as contractors
• CIS deductions are only calculated on invoices where a CIS Labour category is used
• The CIS deduction is applied to the net amount of the CIS labour, exclusive of VAT

Create a CIS sales invoice

1. Select Sales.
2. Select New Invoice.
3. Choose a contact that is set up for CIS. Once selected, you'll see a blue banner advising your contact is set up for CIS and CIS deductions will apply to your invoice.

4. If applicable, select Use Reverse Charge VAT.

   When to use reverse charge VAT

   Reverse charge VAT should be applied to all invoices where you are supplying certain services under the CIS scheme. For a full list, see the Gov.uk website VAT domestic reverse charge for building and construction services

   Remember that the reverse charge applies to theses services plus any construction materials used directly for those services.

5. Enter your labour charge on a separate line.
   • Make sure you choose a CIS labour category to ensure your CIS is recorded correctly
   • CIS deductions are only taken from lines recorded against a CIS Labour ledger account
   • If you’ve set a default on your contact, this will be selected automatically

6. Enter any CIS Materials on a separate line.

   • Choose a CIS Materials category

7. Your invoice will show the total charges for the labour and materials, the CIS deductions and where applicable, the VAT amount being reversed.

    
   
   
   
8. Once you're happy with your invoice, select Save.