CIS
PurePro system allows users to create and process “CIS Deduction” rates. CIS (Construction Industry Scheme) is tax deductions made from payments made to subcontractors in the construction industry in the UK. Under the CIS, contractors are required to deduct a percentage of the payment they make to subcontractors and pay this amount directly to HMRC. This helps ensure that subcontractors are paying the correct amount of tax.
Enabling CIS Deductions
Users are required to enable CIS for each Non-IR35 contractor (Subcontractor) to process deductions.
To enable CIS Deduction for Non-IR35 contractors, follow these steps:
Navigate to Workforce → Workers
Edit the required worker
Enable "Construction Industry Scheme" under "Contract Details" in the "Contract Info" tab
Click "Update"
Users can now add and verify CIS deductions, as required.
CIS is deducted from contractor's payslip when a payment is processed.
Adding CIS Deduction
To add CIS deduction, follow these steps:-
Navigate to Workforce → Workers
Edit the required worker
Click on "Add" under "CIS History" in the "Contract Info" tab
Provide the relevant information, as required
Click on "Save"
Users can process backdated deduction by selecting a previous period when adding CIS deduction.
Verifying CIS Deduction
After adding and deducting CIS deductions, users can verify these deductions against HMRC records.
To verify a CIS deduction, follow these steps:-
Navigate to Workforce → Workers
Edit the required worker
Click on "Verify from HMRC" under "CIS History" in the "Contract Info" tab
A CIS verification is sent to the HMRC via HMRC Outbox.
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