Xero: Construction Industry Scheme | Be sure you want to enable it ... |
Posted by Alison Mead on 10/02/2020 @ 8:00AM You can now manage your Construction Industry Scheme regardless of whether you are a registered contractor or subcontractor (or both) in Xero ... The Construction Industry Scheme can be enabled in Xero, but can not be disabled once you've done it! copyright: elnur / 123rf There is one caveat you need to be aware of. Once the Construction Industry Scheme (CIS) has been enabled for an organisation, it can not be disabled. You must be absolutely sure you understand how CIS works in Xero before enabling it.
"All Xero small business pricing includes basic Construction
Industry Scheme functionality!"
It allows you to automatically calculate and apply CIS deductions to your invoices and bills, report on deductions you've made from payments to subcontractors, run your monthly CIS return, manually file it with HMRC and mark it as submitted in Xero as well as download payment and deduction statements to manually send to your subcontractors.
If you're a contractor, simply add CIS Contractor to your subscription and it will enable:
Online filing of CIS monthly returns with HMRC from Xero Verification of subcontractors with HMRC from Xero Bulk emailing of payment and deduction statements to subcontractors from Xero
CIS Contractor functionality is free until 31st March 2020 and then will be charged at £5 plus VAT per month from 1st April onwards.
Once you've set up CIS in your organisation, you can add CIS information to your subcontractor's contact records. You need to do this for the CIS account codes to be available when creating bills. Once done, you can create invoices or bills using the CIS account codes. You need to create CIS invoices or bills in order to generate CIS reports and returns.
"You can then run the CIS reports determining
your CIS tax obligations!"
If you're a contractor and you've added CIS Contractor to your subscription, electronically file your CIS Return with HMRC, then send payment and deduction statements to your subcontractors from Xero. If CIS Contractor isn't part of your subscription, run the CIS Return in Xero and manually file it with HMRC, then download the payment and deduction statements to manually send to your subcontractors. Until next time ...
ALISON MEAD
Would you like to know more? If anything I've written in this blog post resonates with you and you'd like to discover more, it may be a great idea to give me a call on 01604 217365 and let's see how I can help you. About Alison Mead ... |  | | Alison loves bookkeeping and supporting bookkeepers. She has been helping clients to be better bookkeepers in Sage 50 for over 24 years and has been Xero Accredited in accounts and payroll for a number of years too.
She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.
Alison combines her role at Silicon Bullet with her Forever Living network marketing businesses and is often to be seen at business networking meetings as she likes to keep busy.
You know what they say: if you want something done well ask a busy person!
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