Construction Industry Scheme: 6 key things for contractors to understand
The Construction Industry Scheme is a tax deduction scheme for contractors. Learn about compliance, definitions and the impact of the VAT reverse charge.
Accounting
If you manage a construction business or work as a tradesperson building, plumbing or wiring, boss it by saving time on your admin. And with CIS and domestic VAT reverse charge compliance built-in, you can have added peace of mind.
With cloud accounting software for construction it's simple to create, send, and review invoices so it’s easy for customers to pay you. And with real-time reporting, you can track your payments every step of the way.
It’s time to say goodbye to repetitive bookkeeping tasks. Automate mundane, manual data entry, reconcile bank transactions, and give bookkeepers and accountants a single place to access real-time transactional data.
Stay confident, compliant, and in control with free direct integration with HMRC to calculate domestic VAT reverse charge and submit CIS. Produce your payment and deduction statements quickly from a single secure source.
Make informed business decisions with accurate forecasts showing money coming in and out of your business. Get paid faster with actionable insights.
Pay your people on time, every time. Whether employees are using Sage Payroll or subcontractor invoices, you can automatically calculate deductions, taxes, and track payments.
Work your way, whether you’re on-site, at home or on the go. With cloud accounting software for electricians, plumbers and builders, you can raise quotes, track invoices, stay on top of payments and much more using your mobile device.
Entry-level accounting software. Ideal for subcontractors and sole traders.
Standard accounting software for contractors and subcontractors.
Advanced accounting software for contractors and subcontractors with inventory.
*Get 75% off for 4 months, then £12/£24/£30 + VAT/mo (tier depending). Terms and conditions apply.
**Start your free trial and receive 1 month free, then £12/£24/£30 + VAT/mo (tier depending). Terms and conditions apply.
(1) Starting at 5 employees from £1.75 (offer price) per month + VAT with the option to add employee tiers for up to 50 employees. RRP from £7 + VAT per month (after offer).
(2) Snap and upload data from unlimited receipts, invoices and supplier statements with AutoEntry, free for your first 3 months. Subject to fair usage policy. Standard and Plus tiers only.
Our accounting software for small electrical contractors, plumbers and tradespeople is easy to use cloud accounting software that you can use on the go to manage your finances quickly and efficiently. Our customers within the construction industry use Sage Accounting to:
Managing a business comes with the responsibility of managing payments, expenses, income, invoices or tax returns. To stay organised and to reduce admin, you need the best accounting software for small construction businesses to manage your accounts from one place. You can use Sage Accounting on the go to easily snap and capture receipts and invoices, reconcile bank transactions on your business account, and see how much money your business earns per month or quarter. You can easily prepare for a VAT return to HMRC. And you can work with an accountant and comply with HMRC guidelines for Making Tax Digital and Construction Industry Scheme (CIS).
Whether you’re managing a construction business, or you’re a plumber, an electrician or a builder, you need cloud construction accounting software that can reduce admin time, give you clear visibility of finances and make it easy to get paid. With Sage, you can unlock these benefits at any location, at any time with accounting software that’s perfect for construction businesses. Trusted by workers across the industry, Sage Accounting gives you the flexibility to work in a way that suits you, all while helping you stay HMRC-compliant.
Use Sage Accounting to snap and capture receipts and invoices and reconcile bank transactions on your business account. And see how much money you earn each month or quarter and prepare for a VAT return to HMRC. It's also ideal for working with an accountant and complying with HMRC Making Tax Digital guidelines.
Manage your contacts and finances securely with Sage Accounting. Record your contractors, subcontractors and business contacts in a single secure cloud accounting solution, including managing important details like UTR (unique tax reference), deduction rates and verification numbers.
There are plenty of ways you can save time with Sage Accounting. Here are some examples:
Automate manual tasks
By automating tasks, you can cut down the amount of time you spend on manual data entry to save money and focus on the areas of the business that need the most attention.
AutoEntry
Spend less time on admin and more time on your construction work with a paperless way to manage receipts. Simply snap, scan or email a photo of your receipts, bank transactions, invoices or other documents for your Sage accounts using AutoEntry. Then categorise, publish and share them with your accountant through Sage Accounting. AutoEntry captures tax summaries and full line item details including description, quantity and unit price so it’s an easy way to log the information you need, when you need it.
Other ways to save time:
Fast and easy job management app
Tradify streamlines and automates your job tracking, from enquiry to payment. Reduce admin hours in scheduling, payroll, CIS and more.
Optimised quote management
QuoteOnSite's allows you to create, send and track detailed and professional proposals that are automatically converted to invoices in Sage Accounting.
Optimise business management
Construction Manager is business management software for construction, contracting and housebuilding industries. Automate, streamline and optimise processes.
Gain control and maximise profit
Gain total control over your jobs and staff, allowing your company to run in the most streamlined and cost-effective way, achieving maximum profit.
“It’s so easy. Rather than digging out all the invoices to see the pricing of building materials, the information is there so you can quickly calculate cost and our profit margin.”
Suzanne Mottershead
Leisure Surfaces
Get up to speed on the latest construction legislation and make sure your business is prepared with Sage.
In this guide you'll find out more on:
The Construction Industry Scheme is a tax deduction scheme for contractors. Learn about compliance, definitions and the impact of the VAT reverse charge.
Learn how to solve challenges in managing construction cash flow and discover why long-term construction cash flow projections can help.
Learn how to find the best accountant for your construction firm and stay on top of your finances and legislation such as the VAT domestic reverse charge.
The CIS rules are changing as of 6 April 2021. We explain what's new, what this means for your construction business and how to prepare.
Discover what you need to do to effectively manage cash flow in the construction industry, including using smart reporting tools.
Discover how using job management software can allow you to focus on value-add tasks that boost the prospects of your trade business.
Use this VAT reverse charge checklist for building and construction services to ensure your processes adhere to the new legislation.
What is the VAT reverse charge for construction, which started on 1 March 2021? How does it work? Get the answers to these questions and more.
Whether you’re a sole trader, a micro-business or a small business with complex invoicing requirements, there’s a Sage Accounting solution for you.
