Our Xero HMRC CIS Service can ensure your submissions are correct and help you avoid the penalties for filing late
The Complete CIS Service
Bookkeeping4u can provide a complete comprehensive service for all your Construction Industry Scheme (CIS) requirements. We are HMRC CIS agents and can undertake all monthly CIS calculations and services for contractors and sub-contractors.
The CIS returns are completed using Xero and run in our office. The information for the CIS return is transmitted to us by Email or Hubdoc. The CIS return is run on the agreed day directly to HMRC and statements and payment details are sent out by email on that day.
Why use Xero for CIS?
There are several CIS accounting software products currently on the market that can be useful for producing and submitting CIS information and returns. We recommend Xero to our clients at Bookkeeping4u.
Why is Xero so good?
In our opinion, it’s the most comprehensive accounting software that makes submitting CIS information, tracking payments, filing invoices and tax returns to the HMRC simple and straightforward.
Easy And Efficient To Use!
One of the main benefits of using Xero to prepare and submit CIS information to HMRC is that it is simple and straightforward. It can also be completed alongside your day-to-day bookkeeping.
CIS transactions can be easily reconciled in the bank. They will also be sent to the correct nominal codes, which will later calculate the figures needed to be sent to HMRC for every period.
Xero also gives you the clear visibility needed of previous and upcoming submissions. This ensures that you keep on top of your tax affairs.
Another benefit is that you can verify your subcontractors through Xero, rather than the HMRC website.
Using Xero to verify subcontractors means that you instantly know how much CIS tax is to be deducted from the source when making payments. Xero advises whether your subcontractors are registered for CIS or not.
Automatic CIS Tax Calculation
Once you have verified your subcontractor through Xero, it will then be easier to calculate the CIS tax that needs to be deducted from your subcontractor. The CIS deduction is automatically calculated when you create an invoice for the subcontractor.
The nominal you need to use in Xero to ensure the CIS tax is taken off is ‘CIS Labour Expense’. This will then calculate the final amount. The final total of the bill is the amount that you need to pay your subcontractor.
CIS Return Submission Through Xero
If all of your subcontractors are verified through Xero, then you are able to submit your CIS return through Xero.
The CIS deducted, which is calculated on each subcontractor invoice is added together. This then leaves a figure that needs to be submitted to HMRC.
As your CIS deductions are automatically worked out by Xero, it also calculates the amount that needs to be reported to HRMC every period.
For more information on using Xero to manage your CIS, contact us.