Deductions Under the UK Construction Industry Scheme (CIS) deductions are usually made from pay to sub-contractors which count as advance payments towards their Tax and National Insurance bills.
For more Information see: https://www.gov.uk/what-is-the-construction-industry-scheme
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Creating the worker record
When you create the worker record in InTime the following options should be applied:
- Worker Type: LTD Company
- Ltd Company Provider: None
- Self Billing: Yes
- Pay Ltd Company As: Pay through InPay
- Payment Frequency: select a CIS enabled Payroll
- Use InPay for CIS: ticked
- other mandatory InPay fields are also required: Gender, Date of birth, NI Number, date of Joining
- Enter the CIS Trading name and Business type.
- *Select the CIS Deduction amount
- You should also enter an Accounts Ref as this will be required in order to export the Self Bill invoices to your accounts system.
* Available CIS deduction rates are as follows:
20% for registered subcontractors
30% for unregistered subcontractors
0% if the subcontractor has ‘gross payment’ status - eg they don’t have deductions made
The default for a new CIS contractor is the higher rate 30%. This can only be altered in InTime if the worker is already CIS registered - in order to do this you must enter the Workers Unique Tax Reference (UTR). Once the worker is created and synchronised with InPay changes to the Deduction rate can only be done in InPay.
On saving the record the worker will be synchronised with InPay. On the workers details you should now see a numeric InPay ID. The worker can also be created via import or through a front end system but you will need to ensure that all the fields above are mapped and set correctly.
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Select, preview and generate the required invoices.
* If the CIS deduction amount was not found on the selected pay period there will be a validation error shown with the Invoice.
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