This process has been replaced by a revised CIS process, the details of which can be found here.
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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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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A worker against a CIS Provider
When you create or modify a worker record in InTime the following options should be applied:
- Process CIS Through InPay: Ticked
- Pay Ltd Company As: Pay through InPay
- Payment Frequency: Select the appropriate Payroll - only CIS enabled Payrolls are available
- Enter the CIS Trading name.
- Enter the Providers Unique Tax Reference (UTR) if you have it - this will enable you to select a different deduction percentage.
- Select the CIS Deduction amount - see below
- Self Billing: Yes
- other mandatory InPay fields are set to defaults as they are not applicable to a company: Gender: Male, Date of birth: 1/1/1980, NI Number:NT000000A, Payroll Tax Code: NT, Date of Joining is set to the creation date of the Provider in InTime, Business type: Company.
- You should also enter an Accounts Ref as this will be required in order to export the Self Bill invoices to your accounts system.
Please note InPay Holiday Schemes are not applicable to CIS suppliers.
On saving the record the provider will be synchronised as an employee in InPay. The mployee will have the provider's name as the surname and 'Company' as the forename. The Ref Code will be used as the Employee No. as usual. On the provider details in InPay you should now see a numeric InPay ID and the payment frequency will be disabled.
The Provider can be made a Leaver and re-instated as required using the normal process for a PAYE worker. This process must be also followed if the payroll needs to be changed.In this situation you will need to do the above worker creation but enter the providers details against the worker record. Note: The CIS invoice for the provider cannot be consolidated for all workers using this module.
CIS deduction rates
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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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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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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Payment
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.
HMRC monthly submissions will need to be made for the CIS workers from InPay. This is done from the Processing - HMRC Submission menu. Select the "CIS Monthly return" type.