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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
RSM InTime allows you to show Construction Industry Scheme (CIS) deductions on Self Bill Invoices for CIS sub contractors. RSM InTime uses InPay to manage the CIS deductions as it allows the appropriate HMRC submissions to be made. This feature is available to LTD Company Workers and Ltd Company Providers (Umbrellas)
The following conditions apply:
- Your RSM InTime system must be integrated with InPay and have the Inpay InPay Timesheet exporter selected.
- Other types of Invoice Adjustment should not be made through intime RSM InTime invoices - these should be done through timesheets or expenses.
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When you create or modify a worker record in RSM InTime the following options should be applied:
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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 RSM InTime if the worker is already CIS registered - in order to do this you must enter the Unique Tax Reference (UTR). Once the record is created and synchronised with InPay changes to the Deduction rate can only be done in InPay.
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Create and approve timesheets and expenses for the worker/provider in the normal way.
Export the timesheets and expenses to InPay via the Export screen.
Timesheets for all workers associated with a CIS Provider will be exported to a single record in InPay all workers under that provider
At the appropriate time commit the relevant CIS Payroll periods in InPay.
Synchronise the payslip data with RSM InTime: Administration -> Synchronise Payslips. This step can take a while - you will receive a notification when the process is complete.
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Normally the workers UTR and CIS Verification number should be shown on the invoice. This can be done with an Invoice template - please contact RSM InTime support for assistance with setting up an invoice template.
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It is possible to make payment to the CIS workers either from RSM InTime or InPay but we would normally recommend making payment from RSM InTime by generating a BACS payment file for the CIS Self Bill invoices. You then do not need to generate BACS payment files for the CIS payroll in InPay.
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