What is CIS?

The Construction Industry Scheme (CIS) is run by HMRC and applies to contractors and subcontractors working in construction.

It’s all about tax deductions: instead of paying subcontractors the full invoice amount, contractors deduct a percentage for tax and send it to HMRC on the subcontractor’s behalf.

This ensures that tax is collected up front and that everyone working in the construction sector pays the right amount.

If your customer is a contractor who deducts tax under the Construction Industry Scheme (CIS), you'll need to:

• Create a dedicated CIS Tax Withheld account.
• Record the deduction when the invoice is issued.
• Clearly indicate the CIS amount in the invoice notes.
• Reconcile the net payment when it arrives.

This guide will walk you through each step to ensure your invoices, payment tracking and tax records are accurate and easy to manage.

Please follow the steps here