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3c. How do I change my subcontractor's CIS deduction percentage?

Change subcontractor's deduction percentage2:04

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

The CIS deduction percentage is the amount of CIS tax that's taken off most payments you make to a CIS subcontractor.

To change a subcontractor's CIS deduction percent:

  1. First, select the CIS subcontractor on: "Menu", then "People"
  2. Then tap: "Tax", "Tax settings", then "CIS deduction percent"
  3. Change it to the new percentage that HMRC's requested you to set it to.
  4. Then tap: Save
  5. And finally, all current and future paystubs paid to the CIS subcontractor are now set to deduct with the new CIS deduction percent.

You may notice:

  • That the CIS deduction percentage is automatically set when you first add or re-verify a CIS subcontractor.
  • The percentage that it's set to is based on an instruction sent by HMRC. Commonly, HMRC sets it to 20%.
  • In most circumstances, you shouldn't have any reason to change it.
  • However, on rare occasions, you may get a notice from HMRC asking you to change the CIS deduction percentage for one of your CIS subcontractors.

Keep in mind that:

  • The CIS deduction percentage sets the CIS tax amount that's taken off every payment you make to a CIS subcontractor.
  • The only exception that doesn't have a CIS tax deduction are "Qualifying CIS expenses" paid to the CIS subcontractor.
  • Changing the CIS deduction percentage instantly applies to all current and future paystubs filed.
  • Any paystubs that have already been filed remain unchanged, and use the previous CIS deduction percentage.

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

Updated: Thu, Oct 26, 2023.

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www.1st.money/help/CIS_Construction_Industry_Scheme/3c._How_do_I_change_my_subcontractor's_CIS_deduction_percentage