Home/ Features / CIS filing

Construction Industry Scheme (CIS) with Zoho Books

Auto-calculate your contractor and subcontractor CIS deductions, generate insightful reports, and file CIS returns directly to HMRC.

Request a demo

Instant CIS Submission

You can now file your CIS claims directly to HMRC too —quickly, accurately, and without relying on third-party tools. Simplify your compliance process and save time with Zoho Books.

Send CIS statements to subcontractors

Zoho Books helps you with instant construction industry scheme deduction statements. You may further send the PDF to your subcontractors effortlessly.

Dedicated contact space

Simplify your workflows by managing contractors and subcontractors in one place. Add subcontractors as vendors for billing and contractors as customers for invoicing—all from a dedicated contact space.

CIS invoicing made easy

Create and send professional CIS-compliant invoices to your contractors in within seconds. Zoho Books auto-calculates the appropriate deduction amountand apply Domestic reverse charge for VAT on your invoices in just a click

Simple steps to file CIS returns in Zoho Books

Set up CIS in Zoho Books

Choose Construction Industry Scheme in the Other Taxes section under Taxes and Compliance. Fill out the necessary information to setup CIS in Zoho Books.

Generate CIS returns

Select CIS Filing and generate your monthly CIS returns in Zoho Books.

File CIS returns

View the consolidated return of deductions for the month and review them before submitting the same to HMRC.

Submit to HMRC

You can submit all your unfiled returns directly to HMRC by just filling your unique ID and password.

You have filed your returns!

Get a holistic view of your CIS returns after successful submission to HMRC.

More actions in CIS with Zoho Books

Record Payments made to HMRC

Record payments made to HMRC in Zoho Books, while quickly automating tax calculations.

Comprehensive CIS reporting

Get powerful reports for all CIS transactions, including CIS deduction report, CIS suffered report, and more. Analyse deductions, with-held taxes, and payments with custom filters to gain clear insights.

FAQ section

Expand all

What is CIS?

The Construction Industry Scheme (CIS) is a UK tax system that applies to contractors and subcontractors in the construction industry. This scheme obligates them to pay their taxes and National Insurance.

Under the Construction Industry Scheme (CIS), contractors deduct a specified percentage from payments made to subcontractors. These deductions are then forwarded to HMRC. While registration with HMRC is optional for subcontractors, non-registered individuals are subject to higher tax deductions."
How does domestic reverse charge work?

Normally, the supplier (subcontractor) charges VAT to the customer (contractor). However, under the DRC, the responsibility for accounting for the VAT shifts to the customer.

Contractor (Customer)
Is VAT-registered
Receives a supply of construction services from a VAT-registered subcontractor
Accounts for the VAT on their VAT return, both as input tax (VAT on purchases) and output tax (VAT on sales)

Subcontractor (Supplier)
Issues a reverse charge invoice to the contractor
Does not charge VAT on the invoice

Both the contractor and subcontractor must be VAT-registered for the DRC to apply.
How can Zoho Books help subcontractors?

When you set up CIS as a subcontractor, Zoho Books automatically calculates and applies tax deductions to your transactions using designated account codes. You can then continue to create CIS-compliant invoices as usual. You may further generate a Suffered CIS report to review the deductions made by contractors on your behalf.
How can Zoho Books help contractors?

Zoho Books simplifies CIS compliance for contractors. It helps auto-calculate and deduct the correct CIS amount from subcontractor payments, generates and distributes statements, and directly helps one file CIS returns with HMRC.
Which Zoho Books plan offers CIS features?

CIS features are available from the Professional plan of Zoho Books.

What's next

Here's what our customers are saying about us

I love the mobile application and the banking module of Zoho Books! The bank feeds are directly fetched from my account and sent to Zoho Books—I can reconcile my transactions with the app in minutes on my train ride back home. I can also scan or upload our payment receipts and expenses with the auto-scan feature and add them to our books within seconds! It has made things very simple for us.

Simon Unger

The Procurement Group, UK
Definitely go with Zoho Books and Zoho ecosystem. We haven't looked back ever since we started using it. Our favourite feature in Zoho Books is the ability to connect the business banking accounts and sync statements automatically. I have economized on work-hours and frustration by not having to manually get the .ofx data and import them manually to Zoho Books.

George Blekas

Marine Data Cloud Ltd, UK