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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.

As I suggested nearly a year ago, I can cost Subcontractors adequately without using the CIS system but it is now getting to the point where I have to spend a whole day every month reconciling the entries for the CIS return. This is almost as slow as manual and I would have expected a re-write by now.

I agree with others that xero needs to fix this ASAP so that you can choose the assigned nominal code and not jus the 2 nominal code that zero as assigned.

We are still wasting a lot of time moving costs manually - I suspect this is a relatively easy fix for the software developers.

Agree with above comments. This really is basic accounting 101, madness this wasn't implemented from day one.

Who do you guys get to test your idea's. They are terrible at their job whoever they are.

We are having a similar problem. Our clients are asking to classify CIS labor in different cost heads so that they can analyze the reports, but we have the option to deduct CIS only when we use the CIS labor code otherwise, we can't deduct. So, this issue must be taken up by the Xero development team and sort it out.

We really see a need for this to allow us to report our CIS costs correctly within the profit and loss reports

We have clients who different sorts of CIS work - some zero rated some DRC 20% some DRC 5% and it would be great if we coudl have different codes for differnt work that all deducted CIS

This is really important to us as spend a lot of time posting journals to move different types of costs out of CIS labour expense and to subcontractor type costs. Our P&L's need to report on the different CIS costs and it is very time consuming as it is.

I would like to be able to use different nominal codes for different sub contractors as I would like to see them under different headings in the profit and loss. Journals seems the work around, but easy to get wrong. Different codes would be fantastic