The Construction Industry Scheme (CIS) is a scheme mandated by HMRC, covering most construction work to buildings, decoration and refurbishment. As a recruitment agency, if you are supplying workers who are not paid on PAYE, then you may be considered a sub-employee within the scheme when billing your clients, and you may also be considered a employee when paying your workers. Timesheet Portal can help you calculate the correct deductions and apply them to your invoices.
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Client Invoicing
If you are considered a subemployee under the CIS scheme and you do not have Gross status, then you will need to apply CIS deductions to your invoices. Timesheet Portal can automatically calculate these deductions for you. To switch them on, go to Setting->Client Invoicing->General, and look for the CIS Status drop-down in the Construction Industry Scheme section. The deductions will be automatically applied when an invoice is generated. You will also see the total CIS deductions and final amount due figures available in the totals section of your invoices. If you edit and re-save an invoice, the CIS deductions will be recalculated.
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Self Billing
If you are producing self billing invoices on behalf of your workers, and your organisation falls within the CIS scheme, then you will need to apply the deductions to your self billing invoices. To enable this functionality, you need to switch it on in Settings->Self Billing->General Settings. Tick Enable CIS Deductions and save your changes. Once this is done, you can set the CIS status on individual workers by editing their details in System Management->Employees. Go to the Employment tab, and set the CIS status of the worker. Deductions are automatically applied when a self billing invoice has been generated.
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Expenses under the CIS scheme
As CIS only applies to time worked, and not materials, invoice line items related to expense claims are not included in the deductions.