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This is needed! Critical to business accounts analysis to track costs

Hi, if you want to both do project accounting as well as CIS and VAT then Xero does not work. I have had to back to manual CIS returns again for a couple of our entities....

I already switched over from Xero to Quickbooks which has this functionality, including the ability to use CIS codes in quotes, and the ability to delete quotes. Xero seem far too pre-occupied in developing features nobody asks for but have a price tagged attached to worry about further developing of things we already pay for each month.

Yes it is but it's better than trying to cope with all the journals to get things in the right place

Eve, that is a flaff for something xero should really be doing as standard if they want to not only have small businesses using the software surely!

I have posted here before - there is a work around. You use the set CIS codes to do the CIS entries then on the SAME invoice enter the exact amounts as negative entries to a similar GL code (that is added together for presentation purposes on balance sheet or P&L) so basically you are back to nil payment then add a line where you want it to be. Be careful of VAT.

This feature request has been on the list for three years, but only 51 votes. We need to remind other Xero users if this thread as it is really needed. I have a client talking of leaving Xero just because this is not available.

It would be easy to add this feature. Xero should add a tick box to the account to make it CIS applicable, just like you do with VAT.

We really need the ability to have different CIS codes for: proper subcontractors with fixed price (eg plumbers), labour only subcontractors on daily rate (eg carpenters), and site staff paid hourly (eg site managers.) It doesn't make sense that a site manager and a plumber are under the same code.

Please please please can you sort this out. Thanks

Hi Anita
In the invoice in xero do this:
711 CIS Labour 100
712 CIS materials 20
710 CIS Lab & mats moved to 465 (or where ever) -120 ** MINUS**
465 Repair of XYZ 144

Being 100+20+VAT of 24 = 144. This is my issue that the CIS report picks up total as 144 not 120. I have to manually adjust this but if your VAT is recovered then you won't have this problem.

Try one out in demo company.

We use a unit of CIS repairs (as that's what ours are) for 711/712/170 entries and we check each month that it comes to nil.

I don't understand what you mean. Have you got a bill to demonstrate?

I have a solution for this. You put the CIS into the correct codes (lab & mats) and then reverse them out in a different code (I use 711/712 for CIS and then 710 for the reversal). Then input into where you want them. This only works on Xero reports is you are VAT registered. If you are not VAT registered you need to add VAT in the last step and manually adjust your return at the end. At least all the input is correct and your accounts are right. The CIS return is wrong though.

I am also now going to have to manually submit CIS returns because the software is far too simplistic for CIS. I cannot get good enough reporting with the current limitations.

I would simply like to add more cost centres that can be connected to the CIS report.

There are three distinct types of CIS in the construction industry, and we need three corresponding CIS accounts:

BONA FIDE SUBCONTRACTORS: companies who typically work on a lump sum contract and take risks of a fixed price, provide all own labour and materials, plan and oversee their own work, and possibly carry out some design.

LABOUR ONLY SUBCONTRACTORS: generally self employed workers, who work on an hourly basis, operate under instruction from the main contractor, don't plan their own work or supply any materials and don't take any financial risks.

MANAGEMENT: self employed workers who work on site but are responsible for managing the work only, and do not provide labour or materials.

Please can you make this possible, as it is quite frustrating without it.

It would also be really helpful to be able to use a 400 code for a CIS account as an administrative cost.

Many thanks, Will

Xero has far too many simplifications built into their features which makes it unusable for organisations that need any level of granularity in their reporting. How is this feature not enabled in a similar way to the "Enable payments to this account" feature - it should be as simple as ticking a box and letting the software know it needs to deduct CIS when this account is selected!

I can’t believe this is not a feature! Xero has seriously gone down in my estimations- i’m going to have to manually submit CIS returns because the software is far too simplistic for CIS.

I have started to use a workaround. I have used the two codes 321 and 322 even though they do not conform to my chart of accounts and opened a 325 account which I've called CIS contra. This enables me to cost the subbie into the P & L contract costs whilst enabling the bill to calculate the CIS tax. This reports into the CIS Monthly report, which I input manually. The Balance Sheet accounts 321. 322 and 325, net out to zero. I still have to collect the 'Gross' subcontractors on a spreadsheet to complete my CIS input to HMRC but that's another subject. As we are going to implement a system of retention, that could open up a new nest of vipers!

I need (at the very least) a CIS code for balance sheet (freehold property improvements) and one for the P&L (repairs and maintenance). It's not really acceptable that nothing has been done on this for so long. I'm seriously considering moving to another platform.

I have clients that are really struggling without this functionality and there are limited apps out there to help rectify the problem

Xero needs to fix this ASAP!! Basic accounting to be able to breakdown labour costs between different trades.

You can get round this by coding to 711/712 then deducting from 710 (exactly equal to cancel out - excluding VAT). Then code where you want it (including VAT). All within one bill in xero. But you have to change the return figures so you can’t use the auto submission. My company is not VAT registered so this may work fine if you reclaim the VAT. Worth a trial.