CIS invoicing software that gets the sums right.
Stop working out deductions in a spreadsheet. RunwiseOS raises invoices with the CIS deduction and Domestic Reverse Charge VAT applied correctly, and pushes them straight to Xero.
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What goes wrong with CIS invoices
Deduction worked out by hand and wrong
VAT charged when it should be reverse charged
Accountant fixing invoices at year end
How RunwiseOS handles it
- 1
Set the CIS rate on the customer (20%, 30% or gross) once.
- 2
Mark the job as reverse charge where it applies — the invoice shows the correct wording and no VAT.
- 3
Raise the invoice from the job sheet; labour and materials split, deduction shown, net due shown.
- 4
It syncs to Xero as a CIS invoice, so your accountant sees exactly what you sent.
What is a CIS deduction?
Under the Construction Industry Scheme, a contractor deducts money from a subcontractor's payment and passes it to HMRC. The deduction is 20% of the labour for registered subcontractors, 30% if the subcontractor isn't registered, and 0% for those with gross payment status. It counts as an advance on the subcontractor's tax and National Insurance. Materials are excluded — the deduction only applies to labour.
What is Domestic Reverse Charge VAT?
Since March 2021, for most VAT-registered construction supplies between businesses in CIS, the customer accounts for the VAT instead of the supplier. The supplier doesn't add VAT to the invoice, and the invoice must say the reverse charge applies. End users — the customer at the end of the chain — are excluded and are charged VAT as normal.
This is a plain-English summary, not tax advice — check with your accountant or HMRC.
Common questions
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