CIS Settings for Clients

Learn how to enable and configure Construction Industry Scheme (CIS) settings for your clients in Billo Invoicing.

What is CIS?

CIS is a UK tax scheme where:

  • Contractors deduct tax from payments
  • Rates: 0% (Gross), 20% (Standard), 30% (Higher)
  • Applies to construction work
  • Requires proper documentation

Enabling CIS for a Client

Step 1: Edit Client

  1. Go to Clients page
  2. Click on three dots on client row
  3. Click Manage Client

Step 2: Enable CIS

  1. Find CIS Settings section
  2. Toggle CIS Enabled
  3. Fill in CIS details:
    • UTR: Unique Taxpayer Reference
    • Payment Status: Gross/Standard/Higher
    • NINO: National Insurance Number (optional)
  4. Save client settings
  5. CIS enabled for this client
  6. Auto-fills on invoices

CIS Payment Statuses

Gross Payment (0%)

  • No deduction
  • Verified subcontractor
  • Verified UTR
  • Higher rate deduction

Standard Rate (20%)

  • Standard deduction
  • Most common rate
  • Verified status
  • Standard subcontractor

Higher Rate (30%)

  • Maximum deduction
  • Unverified status
  • Default for new subcontractors
  • Until verification

Using CIS on Invoices

Automatic Population

  • CIS settings auto-fill
  • Rate selected automatically
  • Based on client status
  • Can be overridden

Invoice Creation

  1. Enable CIS toggle
  2. Rate auto-populates
  3. Categorise line items:
    • Labor: Construction work
    • Materials: Supplies
    • Other: Miscellaneous

CIS Calculation

  • Deduction applies to labor only
  • Materials excluded
  • Calculated automatically
  • Shown in breakdown

CIS Best Practices

Setting Up Clients

  • Verify UTR numbers
  • Confirm payment status
  • Keep records updated
  • Check HMRC status

Invoicing

  • Categorise items correctly
  • Use correct deduction rate
  • Include CIS breakdown
  • Keep documentation

Compliance

  • Follow HMRC guidelines
  • Maintain proper records
  • Submit returns on time
  • Keep client details current

Troubleshooting

CIS Not Showing

  • Ensure CIS enabled in settings
  • Check client has CIS enabled
  • Verify user profile settings
  • Check subscription level

Wrong Rate

  • Verify client payment status
  • Check HMRC verification
  • Update client settings
  • Override if needed

CIS support helps UK construction businesses stay compliant!