Enable CIS in your organisation

Enable CIS in your Xero organisation to access CIS system accounts and new CIS reports.

Enable CIS in your organisation

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.
  1. Log in to your organisation in Xero.
  2. In the Settings menu, select General Settings.
  3. Under Organisation, select Financial Settings.
  4. Under Construction Industry Scheme, select:
    • The I am a registered contractor checkbox, if you're a contractor
    • The I am a registered subcontractor checkbox, if you're a subcontractor
    • Both checkboxes if you're a contractor and subcontractor
  5. Enter your Unique Taxpayer Reference.
  6. If you're a contractor, enter your Accounts Office Reference and Employer PAYE Reference.
  7. If you're a subcontractor, select your Subcontractor Deduction Rate.

  8. Click Save.

The CIS system accounts are now enabled in your chart of accounts and your organisation can use CIS features in Xero.

CIS system accounts

If the account code shown below is being used by another account in your chart of accounts, Xero will use the next available code at the end of your chart of accounts list. For example, if 321 is already used, and the highest number used on your chart of accounts is 980, Xero will use code 981 for the CIS Labour Expense account.
Account codeAccount nameTypeDescription
210CIS Labour IncomeRevenueUse this account to record income from labour construction to be received on invoices.
321CIS Labour ExpenseDirect CostsUse this account to record labour charged by subcontractors on bills.
322CIS Materials PurchasedDirect CostsUse this account to record materials charged by subcontractors on bills.
625CIS AssetCurrent AssetUse this account to record the CIS withheld from you on invoices.
821CIS LiabilityCurrent LiabilityUse this account when you pay CIS withheld on bills to HMRC.

CIS reports

  • CIS Monthly Return - shows payments to CIS subcontractors in a tax period, and the CIS deductions payable to HMRC.
  • CIS Payment and Deduction Statements - shows payments and deductions to each subcontractor you've paid in a tax period. Download and send statements to your subcontractors after the end of each tax period.
  • CIS Suffered Report - shows a summary of CIS deductions withheld by contractors and payable to HMRC in a tax period.