How to Make Adjustments for CIS Deductions

You can add back CIS deductions in a few clicks for subcontractor clients that fall under the Construction Industry Scheme

Updated over a week ago

Coconut supports clients on the Construction Industry Scheme.

Both you and your clients can add back CIS deductions to any relevant transactions.

Here's a step by step breakdown on how to add the CIS adjustment in the Coconut Accountant Platform:

Step 1

Head over to your client’s bookkeeping tab and find the income relating to CIS.

Step 2

Click the three dots on the right hand side and select ‘Add back CIS deduction’ or select the transaction and click on 'Actions' menu.

Step 3

This will open up a window asking you to add a CIS deduction. As a default, the rate will be set to 20%, but you can easily edit it if you need to – e.g. if the cost of materials was included in the payment, or if your client has not registered for CIS and is therefore on the 30% rate.

Step 4

Clicking on “Add” will automatically create two adjustments: the income 'gross up' for the additional amount on your invoice (to ensure your income totals are correct) and a “tax withholding” for the deducted amount (so we can report on the amount the contractor has paid on your behalf).

You can always delete the CIS adjustment: again, click on the three dots and select “Delete CIS deduction”. This will delete both the “gross up” and the “tax withholding” figures.

When the tax return is due, you can run our SA103 for the tax year report from the Reports tab to get the figures for total turnover as well as the CIS tax withheld.

Bear in mind that your client will only be able to add back the CIS deduction on Coconut Web at the moment. We have released some guidance on how to add back the CIS deduction and how to raise a CIS invoice.

Did this answer your question?