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
This section describes how InTime can process CIS deductions for your contractors in InTime. This feature is only available for clients who either have InPay or have an outsource payroll engagement with RSM. This is because InPay is required in order to process the CIS deductions and send RTI submissions to HMRC. The facilities are only available to clients using the new InTime style on InTime V6. To have this feature enabled please contact InTime support.
Details This process replaces a previous CIS process details of the previous version of which can be found here. The changes improvements for this version are as follows:
- This version is compatible with the Off-Payroll feature of InTime - you can process both CIS and Off-payroll workers on the same system. The process is very similar for both.
- CIS deductions can be applied to both Self Bill and Advice Notes as required.
- CIS workers can have placements that are CIS and non-CIS concurrently - a tick box on the placement is used to determine this. Their non CIS placements are processed as LTD and paid through Self Bill invoices or Advice notes.
- The CIS invoices or advice notes are generated through the normal invoice generation screens rather than a separate CIS Self bill screen.
A worker can not be both CIS and Off-payroll at the same time. If this is required a separate worker record must be created for each.
In order to apply these CIS deductions, the following must be observed:
Your InTime system must be integrated with InPay and have the Inpay Timesheet exporter selected.
The Contractor must be of type CIS
The placements for which CIS rules apply must have the 'CIS Placement' check-box selected
The contractor must be associated with an appropriate CIS payroll
The contractor must not have an umbrella (Provider) associated to their record.
- The contractor should have a CIS Deduction percentage of 20% or 30%. (0% or gross status contractors can be processed the same but will not have any CIS tax deducted).
- The contractor should have their holiday accrual set to 0%.
- Other types of Invoice Adjustment should not be made through intime invoices - these should be done through timesheets or expenses.
The settings on the candidate record are shown below.
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