How to Record CIS Subcontractor Payments in Xero

[@jennyday5548]

Brilliant - was stuck as hadn't set up an invoice - sorted and very clear

[@lesstax2pay]

Great to hear!

[@brxdlxy_08]

Not sure if you will be able to help here. When I go the the contact and financial details it does not come up with the box to tick CIS subcontractor? Is there anyway of getting this to appear? Thanks. Timestamp 1:32

[@lesstax2pay]

Have you activated the CIS Module stating you are a contractor as well as a subcobtractor

[@brxdlxy_08]

@@lesstax2pay I have not. After looking into this I'm assuming I will tick the 'contractor' box as I hire subcontractors in to do work for my business. Just a bit hesitant about doing this as I'm not strictly a contractor, I just hire in subcontractors when I get very busy to help with labour.

[@lesstax2pay]

To enable deductions to be taken from payments to Subcontractors that box needs to be ticked.

[@bettyrussell584]

@@lesstax2pay Hi, where is the button to tick for this?

[@lesstax2pay]

Hi, To enable CIS on Xero you would need to go to the financial settings, to enable it on the subcontractor you would need to create a contact and scroll towards the bottom where it will state to enable deductions

[@carolynwilliams5415]

Very straightforward

[@lesstax2pay]

Glad it helped

[@tfarrell3112]

Hi, brilliant videos. If my Sole Trader sub-contractor is not VAT registered (but I am if that matters) should I be paying 20% on top of the day rate?

[@lesstax2pay]

Hi, yes you deduct from the total labour amount if they are not VAT registered

[@bernadettelong9720]

THANK you, very clear!!

[@lesstax2pay]

Hi, Not a problem more videos are being released about different features in different software packages

[@LukePhillips-zs5qu]

can i just reconcile? instead of dreating a bil??

[@Beaujolaisbunny]

Thank you that was very clear, Can you explain how to reconcile a subcontractor who has cis deducted processed in another software (Construction Manager). How to reconcile the bank statement. CIS payments to HMRC would be paid through CM.

[@lesstax2pay]

You will need to follow the method in the video, even if you use a third party piece of software - create the bill and then match it off in the bank feed