Learn about the Construction Industry Scheme (CIS)

• Set up CIS in Accounting so sales and purchase invoices calculate the CIS deduction
• If you're a contractor, send monthly returns directly to HMRC. Then produce payment and deduction statements for your subcontractors (also known as CIS vouchers)
• If you're a subcontractor, record CIS for your customers and remain compliant

• The Construction Industry Scheme (CIS) is a tax rule from HMRC. It applies to contractors and subcontractors in the construction industry. See the HMRC guide on the Construction Industry Scheme (CIS)
• If you're a contractor, you must register for the scheme
• Contractors under CIS take money from subcontractor payments and give it to HMRC. The deductions count as advance payments towards the subcontractor’s tax and National Insurance
• As a subcontractor, you don't need to register. However, if you don't register, they deduct a higher rate from your payments
• If you want to import your own chart of accounts, you must do this before you activate CIS. Once activated, we create additional CIS ledger accounts and disable the import chart of accounts feature
• You can record CIS as either a subcontractor, contractor or both

Find out more on Making the transition from recording CIS tax withheld manually to using the CIS feature.

How it works in Accounting

Turn on the CIS features before you start. See how to Set up CIS for your business.

Use special CIS ledger accounts when recording transactions and we deduct the CIS amount automatically.

Identify which of your contacts are contractors and subcontractors. The CIS ledger accounts are only available when entering transactions for CIS contacts.

CIS for subcontractors

Read the guides on:

Set up a contact as a subcontractor for CIS.

CIS payments, credit notes and refunds from subcontractors.

Record a CIS invoice from a subcontractor.

Create subcontractor statements (CIS vouchers).