CIS Deductions Made Simple
The Construction Industry Scheme doesn't have to be a headache. Learn how to automate subcontractor verification, deductions and HMRC returns — all from one platform.
The CIS Challenge
Most construction businesses manage CIS across multiple disconnected tools — creating errors, penalties and wasted time.
Manual Verification
Logging into HMRC's portal individually for each subcontractor, recording verification numbers in spreadsheets, and hoping the status hasn't changed since you last checked.
Deduction Errors
Calculating deductions at the wrong rate because a subcontractor's status changed. Applying deductions to materials when they should only apply to labour. Getting the VAT interaction wrong.
Late Returns
Collating deduction data from spreadsheets, matching it to payments, and filing the monthly return before the 19th — while running a business. Miss it and HMRC charges £100+ penalties.
How CIS Works — A Quick Guide
| Subcontractor Status | Deduction Rate | What It Means |
|---|---|---|
| Gross Payment | 0% | Subcontractor is paid in full. They handle their own tax. Must meet strict HMRC criteria to qualify. |
| Net Payment (Verified) | 20% | Standard rate for registered subcontractors. Deduction is 20% of the labour element only (not materials). |
| Unverified | 30% | Subcontractor is not registered or cannot be verified. Higher deduction rate applies as a penalty. |
How myJobManager Automates CIS
End-to-end CIS management — from subcontractor verification to HMRC return submission.
Verify Subcontractors
myJobManager verifies subcontractors with HMRC automatically, records their verification number and deduction rate, and flags when re-verification is needed.
Calculate Deductions
When you enter a subcontractor invoice, myJobManager applies the correct deduction rate to the labour element automatically. Materials are excluded from the calculation.
Post to Accounts
CIS deductions post to the correct nominal accounts automatically. The CIS liability account tracks what you owe HMRC. No manual journals needed.
Generate Statements
CIS deduction statements are generated automatically for each subcontractor, showing the gross amount, materials, deductions and net payment.
Submit Monthly Return
At month-end, myJobManager compiles all deductions and submits your CIS return directly to HMRC via their API — no manual data entry or separate portal login.
Track on Jobs
Because CIS is integrated with job management, you see the true cost of subcontractors on each job — gross cost, deductions withheld and net payment — for accurate job costing.
Three Ways to Handle CIS
| Task | Manual / Spreadsheet | Separate CIS Tool | myJobManager |
|---|---|---|---|
| Subcontractor verification | Log into HMRC portal manually | In the CIS tool only | Automatic via API |
| Deduction calculation | Calculator / spreadsheet | Separate from invoices | Built into invoicing |
| Accounting entries | Manual journal posting | Export and rekey into Xero | Automatic GL posting |
| Monthly HMRC return | Manual submission | Submitted from CIS tool | One-click submission |
| Job cost visibility | None | None — separate system | Fully integrated |
| Extra cost | Free but error-prone | ~£10-20/month | Included in plan |
Ready to Automate Your CIS?
Verification, deductions, returns and accounting — all handled automatically in one platform.