Sage CIS

Pavlova Registered Posts: 1 New contributor 🐸
My company has recently bought CIS software and I'm the one who will be using it to input all data and do contractors return etc..

I have added each subcontractor on the system but when it comes to invoicing I'm a bit confused with the tax and vat.
The standard tax for subcontractors is 20% so I expected Sage to give me that option when inputting invoices (since the software is specifically designed for this) but I can find only standard vat codes as there are in any other sage package.

Would anyone know how to deal with this?

Many thanks


  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    i think the Thesaurus CIS package is much better i used it for a little while, its all done with one click of a button, but due to costs and the amount of CIS work we do we decieded to do it manually
  • LMW
    LMW Registered Posts: 16 New contributor 🐸
    I'm not sure if I understood your question correctly but the CIS deduction has nothing to do with VAT codes. After you have set your subcontractors up and verified them with HMRC the system sets up the correct CIS treatment for each subcontractor. When you post your subcontractor invoices in the system you enter gross amount and VAT code depending if they are VAT registered or not.There is no need to enter anything about CIS as the system knows how much to deduct when you pay the invoice. You just need to make sure that you post all labour cost on code 6001 and materials 6002. When paying a subcontractor who is verified for minus 20% deduction the system would automatically take 20% of the labour element you have posted on code 6001.
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