Construction Industry Scheme (CIS) Beta in Xero
Use CIS functionality in Xero to manage contractor invoices, subcontractor bills, CIS reporting and HMRC deduction payments.
Get started with CIS Beta 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
What you can do in CIS Beta
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 prepayments coded to the CIS Asset and Liability accounts.
- Create bank rules using the CIS Asset and CIS Liability accounts.
- 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.
What you can't do in CIS Beta
In CIS Beta, you currently can't do any of the following actions using CIS accounts:
- Create credit notes, quotes or purchase orders
- Select the CIS Asset or Liability accounts in an invoice or bill
- Print bills
- Change the contact on an approved or paid bill
- Change between CIS and non-CIS accounts on a paid bill
- Use Find and Recode
- Create bank rules using the CIS Labour Expense accounts
- Create spend or receive money transactions coded to the CIS Labour accounts
- Create repeating invoices and bills
- Create or edit a CIS invoice on the Xero Mobile app
- Create or edit a CIS bill or CIS invoice via the Xero API
- Save an online invoice as PDF, CSV or as a bill in Xero
- Copy a CIS invoice to a bill, quote or purchase order
- Use print preview on CIS invoices
- Use a DOCX branding theme for a CIS invoice
- Merge CIS contacts
- Restore a merged contact if the contact it was merged with is now a CIS subcontractor
- Copy and merge any invoices using the CIS Labour Income account
- Use the CIS Labour Expense account in third party apps that send bills to Xero