CIS invoices

CIS invoices done right

Set your CIS rate once and every sterling invoice takes the deduction off the labour for you. Your client sees the full gross total and a net amount due, the VAT reverse charge is added when it applies, and the books still balance when they pay.

Your first 3 invoices are free to send, no card needed.

How it works

From gross invoice to a net that adds up

1

Set your CIS rate

Choose your rate once in company settings: 20% for a registered subcontractor, 30% if you’re not registered, or 0% for gross-payment status.

2

Split labour from materials

Build the invoice as normal. Labour defaults to the whole subtotal, so a labour-only job needs nothing extra. On a labour-plus-materials job, enter the labour figure.

3

See the gross and the net

The invoice shows the full gross total, the CIS deduction taken off the labour, and the net amount due. The reverse-charge wording is added when you’re VAT-registered.

4

Get paid, books balance

When the contractor pays the net amount, the invoice settles in full. The deduction is booked as a non-cash settlement, so your records stay straight.

The details

CIS deductions, without the spreadsheet

CIS trips people up because the maths sits in the wrong place: you invoice the gross, the contractor pays you less, and the paperwork still has to add up. Sendinvo does the deduction for you and keeps the record straight.

The deduction comes off the labour, not the materials

Set your rate once and every sterling invoice applies it. Labour defaults to the whole subtotal, so a labour-only invoice is done. On a labour-plus-materials job, enter the labour figure and the deduction comes off that alone, leaving your materials at full value. If a job mixes rates across lines, you can also set VAT per line.

Gross total on the invoice, net amount due

Your client sees the full gross total, then the CIS deduction, then a net amount due. Nothing is hidden, and there’s no separate spreadsheet to reconcile. If a contractor pays late, you can add late payment interest before you chase.

When the contractor pays the net, the invoice settles

The invoice settles in full the moment the contractor pays the net amount. Sendinvo books the CIS deduction as a non-cash settlement, so a deducted invoice isn’t left looking underpaid and your records stay clean at year end.

The VAT reverse charge, added for you

If your company is VAT-registered, the domestic reverse charge appears as part of the CIS flow. The invoice carries no VAT and prints the HMRC reverse-charge wording automatically, so the contractor accounts for the VAT at their end and you don’t have to remember the phrasing. Sendinvo suits subcontractors invoicing main contractors under CIS, like plumbers and heating engineers.

Questions

Good to know

Which CIS rate does Sendinvo use?

You set it once in your company settings: 20% for a registered subcontractor, 30% if you’re not registered, or 0% for gross-payment status. Every sterling invoice then uses that rate to work out the deduction.

Does the deduction come off materials too?

No. CIS is deducted from the labour only. Labour defaults to the whole subtotal, so a labour-only invoice needs no extra step. On a labour-plus-materials job, enter the labour figure and Sendinvo deducts from that alone, leaving your materials at full value.

Does Sendinvo handle the VAT reverse charge?

Yes. If your company is VAT-registered, the domestic reverse charge appears as part of the CIS flow. The invoice shows no VAT and carries the HMRC reverse-charge wording automatically, so your client knows to account for the VAT themselves.

When the contractor pays the net amount, is the invoice settled?

Yes. The invoice shows the full gross total and a net amount due after the deduction. When the contractor pays that net amount, the invoice settles in full: the CIS deduction is booked as a non-cash settlement, so your books balance.

Can I raise a CIS invoice in another currency?

No. CIS invoices are GBP and sterling only, because the deduction and the reverse charge are UK rules. For non-CIS work you can invoice in other currencies, and for mixed-rate jobs you can set VAT per line.

Invoice under CIS with the sums already done.

Set your rate, split the labour if you need to, and let Sendinvo work out the deduction, the net due, and the reverse charge.