Record a CIS invoice from a subcontractor

Before creating a CIS invoice for a subcontractor, you need to:

• Set up CIS for your business to ensure you have the correct CIS ledger accounts
• Set up contact as a subcontractor for CIS

You can then apply CIS and VAT reverse charge to purchase invoices for your CIS contacts, using the steps below.

1. Select Purchases and then Purchase Invoices.
2. Select New Invoice.
3. Select a CIS-enabled contact and a blue CIS-registered notification will appear.

4. If applicable, select Use Reverse Charge VAT.

   
   
   ▼When to use reverse charge VAT

   The invoice from your subcontractor indicates when reverse charge VAT applies.

   Reverse charge VAT applies to all invoices for certain services under the CIS scheme. For a complete list, see the Gov.uk website's section on VAT domestic reverse charge for building and construction services.

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

5. Enter the CIS labour amount on one line, using a CIS Labour Expense ledger account.

    

6. Enter the CIS materials amount on another line, using a CIS materials ledger account.

7. Your invoice will display labour and material charges, CIS deductions, and reversed VAT where applicable.

   ▼ See a breakdown of a CIS subcontractor invoice

   

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

CIS payments, credit notes and refunds from subcontractors

Allocate a payment on account to an invoice

Submit your contractor CIS Monthly Return