File your CIS returns online with Xero UK
Want to speed through your HMRC compliance? Verify your subcontractors, automate their deductions, and file your monthly CIS returns directly with HMRC – all from within Xero. Available on the Ignite plan and above.
All plans to suit your business
Ignite
for the first 6 months
Then £16 per month
An easy financial foundation - track cash flow with the essentials.
- Send quotes and 20 invoices†
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions (optional)
- Auto-reconcile transactions (optional)
- Smart document capture
- View real-time reports
- Enter 10 bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for £0.20 per payment††
- Payroll for £1.50 per person
- 30 day cash flow forecast
- Visualise performance with basic graphs
Grow
for the first 6 months
Then £37 per month
Go beyond the basics - automate tasks and access performance dashboards.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Auto-reconcile transactions (Beta)
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 5 payments
- Payroll for 1 person
- 60 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 1 user
Comprehensive
for the first 6 months
Then £50 per month
Optimise profitability - tailor your insights for greater control.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Auto-reconcile transactions (Beta)
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 10 payments
- Payroll for 5 people
- 90 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 5 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
Ultimate
for the first 6 months
Then £65 per month
Future proof your scaling business - with advanced tools and analytics.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Auto-reconcile transactions (Beta)
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 15 payments
- Payroll for 10 people
- 180 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 10 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Track time and costs for projects for 10 users
- Analyse KPIs and ratios
- Benchmark against the industry
Check your subcontractor details
Quickly make sure a subcontractor is signed up to the CIS scheme. Add or import them as a Xero contact, then enter their UTR and expected deduction rate. Easy!
Automate CIS calculations
Xero works out the CIS deductions when you enter a subcontractor’s bill into the system. How? Xero uses accounting codes to apply the correct CIS deduction rate – whether that’s 20%, 30%, or 0% for subcontractors with ‘gross status’.
Generate your monthly CIS returns
A CIS return is a monthly report that contractors – not subcontractors – must send to HMRC. It lists how much you’ve paid subcontractors and the taxes you’ve deducted, and confirms they’re not your employees. Xero simplifies the process by keeping your info accurate and in one place.
How to file a CIS return online with Xero
As a contractor, you must send each CIS tax return by the 19th of the following month.
Double-check the info
CIS returns must include each subcontractor’s name, UTR, verification status, gross payments, and deductions.
Send returns from Xero
You can connect to HMRC from within your Xero software, send the return, and later check the status.
Follow HMRC rules
If you don’t pay any subcontractors for a month, you should send a nil return from Xero or tell HMRC by phone.
Deduction rates for CIS, explained simply
The deduction rate isn’t always 20%. Xero applies the correct rate for each subcontractor so you avoid HMRC penalties. The CIS deduction rates are:
- 20% for registered subcontractors
- 30% for unregistered subcontractors
- 0% for gross payment status when the subcontractor pays no CIS tax
Send your statements in bulk
Email CIS statements to all your subcontractors at once with Xero. Sort the admin, then get back to business!
FAQs on Xero’s CIS returns software
The Construction Industry Scheme (CIS) requires contractors to deduct tax from their payments to subcontractors. Contractors must register for this if they pay subcontractors or spend more than £3 million a year on construction.
Subcontractors don’t have to register, but if they do, their tax is withheld at 20% instead of 30%.
The Construction Industry Scheme (CIS) requires contractors to deduct tax from their payments to subcontractors. Contractors must register for this if they pay subcontractors or spend more than £3 million a year on construction.
Subcontractors don’t have to register, but if they do, their tax is withheld at 20% instead of 30%.
Each return must include the subcontractor’s name, their Unique Taxpayer Reference (UTR) and verification number, the gross payments you made to them, and the tax you withheld (20%, 30%, or 0%, depending on their verification status).
Even if you didn’t pay any subcontractors that month, you must submit a nil return or notify HMRC in another way.
Each return must include the subcontractor’s name, their Unique Taxpayer Reference (UTR) and verification number, the gross payments you made to them, and the tax you withheld (20%, 30%, or 0%, depending on their verification status).
Even if you didn’t pay any subcontractors that month, you must submit a nil return or notify HMRC in another way.
For anyone on the Ignite plan or above, Xero lets you verify your subcontractor details to make sure they’re signed up to the CIS scheme. Xero then automatically calculates the correct CIS deductions on your bills as soon as you create them.
As for filing your CIS returns, Xero lets you send them directly to HMRC every month. Xero also helps you email payment and deduction statements to your subcontractors in bulk. This costs an extra £5 a month across all Xero plans.
For anyone on the Ignite plan or above, Xero lets you verify your subcontractor details to make sure they’re signed up to the CIS scheme. Xero then automatically calculates the correct CIS deductions on your bills as soon as you create them.
As for filing your CIS returns, Xero lets you send them directly to HMRC every month. Xero also helps you email payment and deduction statements to your subcontractors in bulk. This costs an extra £5 a month across all Xero plans.
Contractors need an Ignite plan or above to handle their CIS admin. These plans let you:
- access CIS account codes
- create and approve bills (Ignite lets you enter up to 10 bills and 20 invoices a month)
- automatically calculate CIS and run monthly reports
- export returns showing CIS deductions
You need to pay an additional £5 a month across all Xero plans to: verify subcontractors, file monthly CIS returns to HMRC, and email statements in bulk.
Contractors need an Ignite plan or above to handle their CIS admin. These plans let you:
- access CIS account codes
- create and approve bills (Ignite lets you enter up to 10 bills and 20 invoices a month)
- automatically calculate CIS and run monthly reports
- export returns showing CIS deductions
You need to pay an additional £5 a month across all Xero plans to: verify subcontractors, file monthly CIS returns to HMRC, and email statements in bulk.
If you’re a subcontractor and you’ve signed up for the CIS scheme, Xero uses CIS account codes to apply the deductions to your transactions. This means you can create invoices with the correct CIS deduction due. You can also run Xero’s CIS suffered report to see the deductions your contractors have made.
If you’re a subcontractor and you’ve signed up for the CIS scheme, Xero uses CIS account codes to apply the deductions to your transactions. This means you can create invoices with the correct CIS deduction due. You can also run Xero’s CIS suffered report to see the deductions your contractors have made.
You must send HMRC your CIS return by the 19th of the following month. Penalties start at £100 for being a day late and can rise to 5 % of the deductions on the return after 6 months. It’s possible to submit a formal appeal within 30 days of a penalty notice if you have what HMRC calls a ‘reasonable excuse’ for missing a deadline.
You must send HMRC your CIS return by the 19th of the following month. Penalties start at £100 for being a day late and can rise to 5 % of the deductions on the return after 6 months. It’s possible to submit a formal appeal within 30 days of a penalty notice if you have what HMRC calls a ‘reasonable excuse’ for missing a deadline.
You need to either file a nil return or tell HMRC that no return is due. You can also request an inactivity period of up to 6 months if you temporarily stop using subcontractors.
You need to either file a nil return or tell HMRC that no return is due. You can also request an inactivity period of up to 6 months if you temporarily stop using subcontractors.
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