A CIS invoice must show the gross amount, the labour element the deduction applies to, materials and plant hire (which are excluded from the deduction), the deduction rate — 20% for verified registered subcontractors, 30% for unverified — and the net amount payable. VAT is shown separately, and where the domestic reverse charge applies no VAT is charged but the invoice must state that the customer accounts for it.
A CIS invoice that does not separate labour from materials is the fastest way to have tax deducted from money that was never taxable. This template splits them, applies the deduction to labour only, and shows the contractor exactly what to pay and what to report.
The deduction only applies to labour. Materials, plant hire and consumables you supplied sit below the line and are paid gross.
20% if the contractor has verified you as registered, 30% if not, 0% if you hold gross payment status. The template shows all three so nothing is guessed.
Where the customer is CIS-registered and not an end user, the invoice states that the customer accounts for VAT under the domestic reverse charge.
Gross, deduction and net are all on the face of the invoice, which is what your monthly statement and year-end reconciliation are built from.
No. The deduction applies only to the labour element. Materials, plant hire and consumables you paid for are excluded, which is why they must be shown separately on the invoice.
30%. Once the contractor verifies you with HMRC as a registered subcontractor the rate drops to 20%, and gross payment status means no deduction at all.
Only where the reverse charge does not apply. For construction services supplied to a CIS-registered customer who is not an end user, you charge no VAT and state that the customer accounts for it.
Yes. WinkScope generates the invoice from the job, applies the deduction to labour only and keeps the gross, deduction and net figures against the subcontractor record.
A CIS invoice must show the gross amount, the labour element the deduction applies to, materials and plant hire (which are excluded from the deduction), the deduction rate — 20% for verified registered subcontractors, 30% for unverified — and the net amount payable. VAT is shown separately, and where the domestic reverse charge applies no VAT is charged but the invoice must state that the customer accounts for it. WinkScope subscriptions are charged in USD worldwide. Local currency here is how you price your own jobs inside WinkScope — quotes, invoices, price book and reports all render in it.