🎥Streamlined CIS in untied

Automating CIS income and expenses in untied - video walkthrough

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(apologies for the poor sound quality at points)

The videos show how to streamline and automate your Construction Industry Scheme (CIS) income and expenses in untied.

More details on CIS in MTD, and how to make it easy

What is CIS

Under CIS, if you receive money from a main contractor, they will deduct tax before paying you and send it to HMRC on your behalf.

At the end of the tax year:

• this tax is taken into account when you complete your tax return
• you may get a refund or need to pay a small amount

How CIS works in untied

If you operate as a subcontractor, untied can pre-populate your CIS income and expenses as part of your in-year or quarterly updates.

For CIS income:

• you do not need to tag these transactions

If you have other income or expenses outside CIS (eg private jobs, tools, vehicles):

• you still need to add and tag these either manually or via your bank feed

Preparation

Once you turn on automation, future quarterly updates will be prepopulated.

• If you have already tagged transactions which relate to CIS income you will need to untag them (or create a new custom tag which maps to personal - ask and we can do this for you), else things will be double counted
• Also don't tag new transactions that relate to CIS income and expenses

Step 1: Go to Making Tax Digital

1. In untied, go to Making Tax Digital from the left-hand menu
2. Enable MTD if needed
3. Connect to HMRC using your Government Gateway details
4. Grant permission

Once connected, your MTD income sources will appear.

Step 2: Enable "automate CIS"

1. Find your self-employment business that relates to your CIS income
2. Select the settings (cog icon)
3. Tick automate CIS
4. Select save

This will bring in CIS income from all your contractors.

Step 3: Complete your quarterly updates

When you complete a quarterly update:

• untied pre-populates income and expenses using HMRC data
• this includes data reported by your contractors
• if you work with multiple contractors, they are all included
• untied takes account of income and expenses you have added yourself

To submit:

1. Review the figures
2. Select submit

The data is sent to HMRC.

You can also turn on auto submit.

What happens in transactions

As part of this new transactions are added for CIS income and cost of materials.

Important:

• do not edit these transactions
• they will update each time you do an update

If the amount is wrong (you can check this by going to Making Tax Digital -> Other income -> and then opening up CIS at the bottom.

What happens at year end

At the end of the tax year:

• you will need to check that the amount reported by the contractors is correct
• untied includes the tax already deducted by your contractors
• this amount is taken off your tax bill when you complete your tax return

Disabling CIS automation

You can disable CIS automation by going into your MTD business settings.

Existing CIS prepopulated transactions will remain though you can choose to untag them.

Summary

With CIS automation in untied:

• CIS income and expenses are pre-populated from HMRC
• you do not need to tag CIS transactions
• you can submit quarterly updates directly to HMRC

This helps you complete your in-year quarterly obligations using HMRC data.