Construction Industry Scheme (CIS) in Xero

Use CIS functionality in Xero to manage contractor invoices, subcontractor bills, CIS reporting and HMRC deduction payments.

Once CIS is enabled for an organisation, it can't be disabled. Use the Demo Company to see how CIS in Xero works before enabling it in your own organisation.

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

Enter transactions

  • 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 reports

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.