untied and the Construction Industry Scheme (CIS)

The Construction Industry Scheme (CIS) is a mechanism by which a contractor may deduct a payment to a subcontractor, and pay that across to HMRC.

untied supports subcontractors using the CIS.

This is how to do it. Make sure you follow all steps!

Income received against which CIS deductions have been made

We'll use the example where you are a subcontractor earning £100. You are paid £80. The contractor deducts £20 and pays it to HMRC. They also report to you what has been deducted (£20).

In untied:

1. The money received (£80) is tagged as "business income" - (do not tag it as salary or enter it in employment: you are self-employed)

2. IMPORTANT: The sum deducted (£20) must also be entered as a manual transaction (click the plus button on the Money screen > Money in, select a date before the end of the relevant tax year eg 5 April 2019) and tag it as Business Income.

(If you are entering this as manual / cash transactions, you can combine the figures in 1 and 2 ie enter £100 as business income, and put the £20 in the deduction box - see below)

3. ALSO IMPORTANT: You don't want to pay tax which has already been taken off. As we have identified, the deductions for the year (£20 in this example) will be reported to you by the contractor. Enter this number on the business income (self employment) profile screen under "Total Construction Industry Scheme (CIS) deductions taken from your payments by contractors".

In the untied mobile app this page appears when a wizard is triggered, or by navigating to Profile > Income > Business > More options

In untied in the browser you can find this under Tax forms > Self employment > More options. Remember to hit save!

Income received against which no CIS deductions have been made

This is to be entered in untied as any business income, ie tag the income as it comes in as Business Income.