untied and the Construction Industry Scheme (CIS)

Last updated 23 December 2019

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.

Income received against which CIS deductions have been made

We'll use the example of a subcontractor earning £100. They are paid £80. The contractor deducts £20 and pays it to HMRC.

In untied:

1. The money received (£80) is tagged as "business income"

2. 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".

This page appears when a wizard is triggered, or by navigating to Profile > Income > Business > More options

3. The same sum (£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 3 ie enter £100 as business income, and put the £20 in the deduction box)

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.

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