Does CIS apply to you?
Your client will let you know if the work you are doing for them is classed as "CIS". If so, your client is obliged to make a tax deduction from the amount due on your invoice.
You must register your business on the CIS scheme if you are subject to CIS deductions. This will reduce the amount deducted from 30% to 20%.
What happens to the CIS deductions?
These deductions are not an additional tax. They are basically an advance payment of any PAYE tax that is due by your business. If the CIS deductions are bigger than your company's PAYE tax bill then Tempo will help you get these deductions offset against your Corporation Tax bill instead.
Marking your invoice as part paid.
When you receive funds from your client it will not cover the full invoice amount because of the CIS deduction. Please only record the actual amount paid into your bank account against the invoice.
Tempo will then mark the remaining amount as a CIS deduction so that the invoice is not marked as "Outstanding" or "Payment Due".
Please contact Tempo for help on this.
Receiving a CIS statement from your client.
Your client is legally obliged to send you a CIS statement covering every CIS deduction they make.
Please ensure that your client sends you this statement and forward a copy onto your Tempo support team. We can then ensure we are recording the deductions correctly.