CIS Construction Industry Scheme

"I'm adding a CIS subcontractor who already has an 11-13 digit verification reference from HMRC, from a previous payroll system. How do I add this pre-verified CIS subcontractor?" 

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To add a pre-verified CIS subcontractor: 

1. First, select the CIS subcontractor on:
   Menu > People 
2. Then click:
   Pay > Pay > Employment type 
3. Set them as a "CIS subcontractor", and click: Save 
4. Next, click:
   Pay > Tax > CIS subcontractor type 
5. Select the subcontractor type that applies, sole trader is the most common. 
6. For subcontractors your company's previously verified with HMRC, you'll find their 11-13 digit verification reference number on their past CIS monthlies. 
7. So next, click:
   Previously verified, and select: Yes 
8. Next, enter their:
   CIS verification reference number 
9. After that, click:
   CIS deduction percent, and enter the rate that HMRC gave you, 20% is the most common. 
10. Then click:
    UTR (Unique Taxpayer Reference), and enter the subcontractor's UTR. 
11. And finally, you'll see a purple check showing that your new CIS subcontractor has been successfully added. 

To open a pay batch's "People" report, to see CIS subcontractor status for a number of subcontractors: 

1. First, select the pay batch on:
   Menu > Pay batches 
2. Then click:
   Pay > People 
3. And finally, look for their percentage value in the CIS column. 

 

Adding an unverified CIS subcontractor

To learn more: 

• About adding a subcontractor that's never been verified by you before, watch the video on: Adding an un-verified CIS subcontractor 

And that's it! That's everything you need to know about adding pre-verified CIS subcontractors! 

"How do I add a new CIS subcontractor?" 

When you hire a new CIS subcontractor your first step is to add them as a person in 1st Money. 

To add a person as a CIS subcontractor your: 

1. First, click:
   Menu > People > Invite a person 
2. Once it's open, enter the subcontractor's email and click: Invite 
3. Next, fill in the subcontractor's name. 
4. Then click: Paid as a contractor 
5. Then set the "Pay batch" to the same pay batch used by other CIS subcontractors, and click: Next 
6. Set any of the "Job settings" if you wish, and click: Next 
7. Now, when you see "Is a CIS subcontractor?", select: "Yes" 
8. You're welcome to set a "Rate amount", but for CIS subcontractors this is optional. 
9. Then click: Next 
10. Select the subcontractor type. 
11. Next, set "Previously verified" to "No", and then fill in the other details. 
12. Then click Set address and enter their address. 
13. Click Next and continue through the other steps of the onboarding. 
14. And finally, click Finish, then: Close 

The admin onboarding summary now shows any remaining steps left to complete. To see the admin onboarding summary, scroll down and look for: "Admin onboarded" 

Usually, you'll see that only the "CIS verification reference number" step is left. 

To do a CIS verification: 

1. First, click the "Edit" button:  
2. Then click: Verify CIS 
3. The CIS subcontractor's info is now being sent to HMRC to be compared with registered subcontractors. It usually takes HMRC around 15-20 seconds to process the verification and send back confirmation that HMRC received it. 
4. And finally, you'll a this purple check showing the verification's completed. 

Sometimes you may see a red popup saying "CIS subcontractor not registered". This means: 

• That the CIS subcontractor wasn't found in HMRC's database, so the CIS subcontractor can't get the 20% deduction rate. 
• Once the CIS subcontractor is registered, wait for HMRC to tell you to set them to the lower 20% rate. 
• Until then you can still pay them, but the CIS subcontractor's deductions remain set to the highest rate of 30%. 
• CIS subcontractor's can register for CIS on the Government Gateway website, or by calling the CIS helpline. 

And that's it! That's everything you need to know about adding a CIS subcontractor that isn't registered! 

"How do I reverify a CIS subcontractor?" 

If a subcontractor hasn't been paid or verified in the current or previous two years the subcontractor must be verified again. 

When you're paying a CIS subcontractor, you may see a warning, that their verification has expired. 

To reverify an expired CIS subcontractor: 

1. First, click the warning status:  
2. Or, alternatively you can click:
   Pay > Tax > CIS verification reference number 
3. If there's no changes to make, then beside the CIS verification reference number click Reverify unchanged to verify their existing details to HMRC again. 
4. It usually takes HMRC around 15-20 seconds to process the verification and send back confirmation that HMRC received it. 
5. And finally, once HMRC responds, you'll normally see a purple check showing that the verification has been completed. 

And that's it! That's all you need to do to reverify a CIS subcontractor! 

"How do I change the details of a CIS subcontractor?" 

The most common reason to delete a CIS verification is changing from a sole-trader to a company. 

To delete a CIS verification: 

1. First, click the "delete" link. 
2. And finally, once deleted, all their previous verification details disappear and you can now select the CIS subcontractor type again. 

To re-verify a CIS subcontractor as a company: 

1. First, set "Previously verified" to: "No" 
2. Enter the company name and registration number. 
3. Then click Save to re-verify with HMRC. 
4. Again, it could take HMRC 15-20 seconds to do the verification, so you may have to be patient while you wait for HMRC's response. 
5. And finally, once finished, again you'll see the purple check showing that the verification has been completed. 

And that's it! That's all you need to do to reverify or change a CIS subcontractor! 

"How do I file the "CIS monthly"?" 

The "CIS monthly" has to reach HMRC by the 19th of every month. 

To file a pay batch's "CIS monthly": 

1. First, select the pay batch on:
   Menu > Pay batches 
2. Then click:
   Monthly > CIS monthly 
3. Check the details are correct. 
4. And click: File with HMRC 
5. And then click: Yes ... mark as done 
6. It usually takes HMRC around 15-20 seconds to finish processing the return and send back the result. 
7. And finally, you'll see two checkmarks on your To-do list to show it's been sent, and that HMRC confirmed receipt. If you want to see more details, click either of the checkmarks. 

"How do I re-file the "CIS monthly"?" 

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To make amendments to a pay batch's "CIS monthly": 

1. First, hover your mouse over the row and click the "Redo" link. 
2. The "CIS monthly" now loads with the up-to-date info. 
3. You could also check the box for nil returns if needed. 
4. Then click: File with HMRC 
5. And finally, when you re-file the "CIS monthly" with changes, HMRC only stores your last filing. 

And that's it! That's all you need to do to re-file your "CIS monthly"! 

"How do I change my subcontractor's deduction percentage?" 

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To change a subcontractor's CIS deduction percent: 

1. First, select the CIS subcontractor on:
   Menu > People 
2. Then click:
   Pay > Tax > CIS deduction percent 
3. Change the percentage. 
4. And finally, click: Save 

And that's it! That's all you need to do to change a subcontractor's CIS deduction percent!