4d. How do I pay CIS subcontractors for invoiced materials, etc?

"How do I pay CIS subcontractors for invoiced materials, etc?"

Sometimes your CIS subcontractors, in addition to invoicing you for their "CIS labour", also invoice you for "Qualifying CIS expenses", and: "Other expenses"

To pay a CIS subcontractor for their invoiced "Qualifying CIS expenses" and "Other expenses":

1. First, select the CIS subcontractor on: MenuPeople
2. Then tap: TaxTax settings
3. And, if it's your first time to pay them, check the CIS subcontractor's been: "CIS verified by HMRC"
4. Qualifying CIS expense: To pay the CIS subcontractor for their invoiced "Qualifying CIS expenses", tap: PayAdd expense claim
5. And select: "Qualifying CIS expense"
6. If you've got an image, like a receipt, that you'd like to include, you can upload, or take a photo of it.
7. Then tap: Next
8. Type in the money amount on the invoice and tap: Next
9. And select the category of "Qualifying CIS expense" from the list.
10. Type in any notes to go along with the expense claim. For example, you could enter the invoice number. Then tap: Next
11. And finally, because you're entering the "Qualifying CIS expense" expense claim as an admin, you'll see that it's been automatically approved.
12. Other expenses: To pay the CIS subcontractor for their invoiced "Other expenses", tap: PayAdd expense claim
13. And select: "Other expense"
14. Again, if you've got an image, like a receipt, you can upload, or take a photo of it.
15. Then tap: Next
16. Type in the money amount and tap: Next
17. And select the category of "Other expenses" from the list.
18. Type in any notes. Then tap: Next
19. And again, because you're an admin, it's automatically approved.
20. Payslip: Next, to see their "Qualifying CIS expenses" and "Other expenses" expense claims on the CIS subcontractor's payslip, tap the arrow (at the top).
21. Then scroll down to see the "Other expenses" that the CIS subcontractor invoiced.
22. And scroll down further to see the "Qualifying CIS expenses" that the CIS subcontractor invoiced.
23. Then to proceed with payment, scroll to the bottom, and tap: Go to "Pay now" report
24. And finally, on payday, the CIS subcontractor receives payment for their invoiced expenses. In addition, the CIS subcontractor also receives their CIS "Payment and Deduction statement" or PDS, as an email.

You may notice:

• That sometimes your CIS subcontractors are VAT registered, and add a VAT amount to their invoiced "Qualifying CIS expenses" and: "Other expenses"
• If the CIS subcontractor is VAT registered: only enter the amount before VAT is added (remove the VAT if you need to).
• However, if the CIS subcontractor isn't VAT registered: include VAT (if any) in the amount.

Keep in mind that:

• For "Qualifying CIS expenses", only materials purchased to fulfil a particular construction contract can be included in the invoice. The following may include:
• Materials the subcontractor's paid for directly.
• Manufacturing or prefabricating materials.
• Equipment which is now unusable ("consumable stores").
• Plant hired for the job.
• Consumable items such as fuel needed for plant and equipment (including if plant wasn't hired).

Also remember that:

• "Other expenses" are mostly going to be subsistence and travel costs.
• Any subsistence and travelling expenses (including travel fuel costs) must be recorded separately from: "Qualifying CIS expenses"

To learn more:

• About Qualifying CIS Material expenses, go to GOV.UK.

And that's it! That's everything you need to know about paying a CIS subcontractor for their invoiced "Qualifying CIS expenses" and "Other expenses"!