Construction Industry Scheme

The Construction Industry Scheme (CIS) covers the deduction of Tax from certain Subcontractors who are not subject to PAYE.

CIS subcontractors must pay a different amount of tax to HMRC each month depending on their status. HM Revenue & Customs holds a database of all Subcontractors together with their tax status and Unique Tax Reference (UTR).

The CIS has been around for many years; however from 6th April 2007 a new scheme was introduced which dispenses with the need for registration cards, certificates and vouchers and replaces them with electronic registration via HMRC’s gateway.

The Earnie CIS module allows you to:

1. Create companies on your payroll that are purely for CIS.

2. Store the UTR for each company.

3. Contact HMRC’s gateway to verify the tax status of any of your subcontractors.

4. Calculate VAT for VAT registered companies.

5. Withhold part of the payment until future pay periods.

6. Print Invoices and Remittance advices.

7. Provide the compulsory monthly tax returns to HMRC online.

8. Create a journal file.

9. Link Subcontractor companies to a PAYE company for reporting at the PAYE Year end.

10. Split Material and Labour costs between different jobs (if you also have the Costing Module).

In this section:

• Creating a CIS Company

• Adding Payments and Deductions

• Setting Up Online Services

• Adding Subcontractors to the Payroll

• Verifying your Subcontractors

• Verifying Subcontractors when first creating a CIS company

• Paying Subcontractors

• Reporting

• Year To Date Summary (CIS Only)

• Remittance (CIS Only)

• Invoice (CIS Only)

• Plain Paper Payslip (CIS Only)

• Quick Report Writer

• Month End Online Submission

This topic concentrates on the functions specifically introduced for the CIS module. It is still possible to use most of the other functions that are within PAYE Companies. For example, you can use Rates or Salary to pay your subcontractors just as you would pay an employee in a PAYE Company.