UK CSF - is anybody using the CIS (Construction Industry Scheme) functionality?

Kinetic ERP
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1

Hi

I have a customer that we’re implementing (UK based) that needs to report to HMRC under the Construction Industry Scheme (CIS).

The UK CSF pack includes this functionality it seems, but no good documentation seems to exist to document how certain things should be configured. On Supplier Maintenance there is a new section for indicating CIS membership of the supplier, providing Tax ID etc.

There is also a set of options exposed in Company Config where you can configure the HMRC URL, and user/password - so this all makes sense. This works with the CIS Monthly Report Dashboard, and there’s a Payments and Deductions Statement too.

So the bit that’s missing is how to configure the Withholding Tax - I’ve cobbled it together and kind of have it working, but if anybody is using this functionality it would be great to compare notes. It’s also not clear whether the checkbox on Supplier for Higher Rate Deduction is functional, or just there as a place to record the fact and let you decide whether you need to withhold 20% or 30%.

I’d be very interested to hear from anybody who is using, or has previously used this. In parallel I’m speaking to Epicor product management to try and find the person who wrote it originally :slightly_smiling_face:.

Many Thanks
Mark

2

Hi Mark,

is this something to do with the advanced project management by Precise?

3

Hi Andy

No it’s actually functionality delivered by Epicor as part of the UK CSF pack.

CIS is where HMRC get contractors in the construction industry to withhold either 0, 20 or 30% of the payment to a subcontractor to cover their personal tax - HMRC decides for each subcontractor which percentage you should use. As the contractor you withhold that percentage and then pay it over to HMRC directly - the subcontractor then uses the deduction certificate that you provide them as part of their tax return and prove to HMRC that they’ve already paid it.

4

Hi Mark,

interesting, I have just found the same info on our system, there is an implementation guide on Epicweb called VAT Domestic Reverse Charge for CIS

try that one

5

Thanks so much Andy - that answers some of the questions for sure.