Deductions are usually made from pay to sub-contractors which count as advance payments towards Tax and National Insurance.
For more Information see: https://www.gov.uk/what-is-the-construction-industry-scheme
InTime allows you to show Construction Industry Scheme (CIS) deductions on Self Bill Invoices for CIS sub contractors.
The following conditions apply:
- Your InTime system must be integrated with InPay and have the Inpay Timesheet exporter selected.
- Other types of Invoice Adjustment should not be made through intime invoices - these should be done through timesheets or expenses.
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).
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.
Pay/Invoicing
Create and approve timesheets and expenses for the worker in the normal way.
Export the timesheets and expenses to InPay via the Export screen.
At the appropriate time commit the relevant CIS Payroll periods in InPay.
Synchronise the payslip data with InTime: Administration -> Synchronise Payslips. This step can take a while - you will receive a notification when the process is complete.
To generate the invoices:
Go to "Invoicing -> Self Bill -> Generate CIS Invoices".
Select the required CIS payroll and appropriate payroll period - normally the most recent.
* If the required payroll is not available make sure it is set up as a CIS payroll and your InPay connection is working.
* If the required period is not available check you have committed the payroll in InPay and then synchronised the payslip data.
Apply any other relevant filters and click search.
Each invoice preview returned should include an Adjustment line for the appropriate CIS deduction amount.
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.
Only workers with a 20% or 30% Deduction rate will have deductions added to their invoices.
Normally the workers UTR and CIS Verification number should be shown on the invoice. This can be done with an Invoice template - please contact InTime support for assistance with setting up an invoice template.