How to raise a CIS invoice for a customer

The Construction Industry Scheme (CIS) scheme contains rules set out by HMRC on how subcontractors working within the construction industry should be paid.  It allows subcontractors to make a deduction of 20% or 30% on their invoices depending on the status of their customer.

Okappy’s workforce management platform allows for CIS deductions to be included on an invoice. Read on for more information about how to set up CIS deductions for a customer.

Set up your labour item code as CIS eligible

CIS deductions are allow on labour costs only.  To include CIS, first ensure your labour item has CIS enabled.

To enable CIS on your labour item,

  • Go to the Invoices screen
  • Click Invoice options
  • Click Account settings
  • Ensure you have an item for labour and that the CIS checkbox is ticked

Account Settings CIS VAT RC

Add the CIS rate for your customer

To deduct CIS for a customer’s invoice, choose the relevant customer from the connections screen, then

Click Add/edit account details

Connection Account Settings

Add the CIS rate (this is typically 20)

Account Settings CIS

Click Update account settings

Raise your invoice

You can now raise your invoices for your customer and the CIS deduction will be included on any labour charged.

Raise Invoice CIS

See our short video guide

See also

For more information on raising invoices, see