Raising a CIS Invoice

How to add CIS deductions to your invoice if you're working for a company registered under the Construction Industry Scheme

Updated over a week ago

If you work in the construction industry, you may be registered with the Construction Industry Scheme (If you are not sure what CIS is, read the HMRC Guidance for CIS Subcontractors).


When you invoice a Contractor as a Subcontractor, you're required to deduct a default of 20% from the relevant amount. This means, when the payment comes into your account, Coconut will only see the net payment amount (the amount with tax deduction already applied).

You can do this by using negative line items on the invoice.

Step 1:
Add your line items for your labour, plus separate line items for any materials that you're charging on.

Step 2:
Add another line item for the CIS deduction, and select it as a negative line item. Generally this will be 20% of the labour amount (or 30% if your not yet registered with HMRC).

Step 3:
The Contractor may require your unique taxpayer reference. You can use the Invoice Footer to add this.

From there, you can complete your invoice as usual.

We have also made it possible to add back the CIS deduction to the relevant transactions on Coconut Web.

Read more:

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