Construction Industry Scheme (CIS) in Xero
Use CIS functionality in Xero to manage contractor invoices, subcontractor bills, CIS reporting and HMRC deduction payments.
Get started with CIS in Xero
Set up your organisation to work with CIS in Xero. When you've done this, you'll have:
- New system accounts to track and record CIS payments and deductions
- Access to the new CIS reports
About CIS in Xero
Add or update contacts
- Add or update contacts which are subcontractors, to include CIS information.
- Import CIS contacts in one go using the import function.
- Add and edit bills from subcontractor suppliers. Xero will automatically calculate the CIS deduction that is to be withheld and paid to HMRC on behalf of the subcontractor.
- Add and edit invoices to send to contractors. Xero will automatically calculate the CIS deduction that will be withheld by the contractor and paid to HMRC on your behalf.
- Create bank rules using the CIS Asset and CIS Liability accounts.
- Add and edit a sales or purchase credit note to include CIS information.
- Run a CIS Monthly Return to show payments to CIS subcontractors in a tax period, and the CIS deductions payable to HMRC.
- Run CIS Payment and Deduction Statements to download and send to your subcontractors after each tax period.
- Run a CIS Suffered Report to show a summary of CIS deductions withheld by contractors and payable to HMRC.
Record payments to HMRC
- Create spend money transactions coded to the CIS Liability account to record CIS deduction payments to HMRC following the end of each tax period. You can also do this during bank reconciliation and in cash coding.