The construction industry has many legislative requirements. Calculating deductions, subcontractor bills, and the extra tax reporting is a significant drain on time. Automating the process with an add-on such as the Xero Construction Industry Scheme (CIS) is a cost-effective way of increasing accuracy while decreasing paperwork. Here’s what’s on offer.
The CIS Drain
The Construction Industry Scheme (CIS) is supposed to make life easier. However, calculating the correct deduction from a subcontractor’s payment and passing it to HM Revenue and Customs (HMRC) can frequently turn into a headache. Manually calculating and filing monthly reports takes time, and HMRC errors quickly add up to long-term problems.
The Xero CIS add-on is a tailor-made app, designed to take the hard work out of the monthly CIS return. Xero already has some features as standard. These include automatic calculations and deductions, as well as downloadable statements that can be sent to subcontractors. However, the add-on makes the process even more effortless. For instance, it includes features that enable returns to be submitted online rather than manually. Xero can be used to verify subcontractors directly with HMRC and keep everything all in one place. CIS Returns are made to HMRC on a cash rather than an invoice basis, so complex and duplicated reports are avoided.
The Power Of Automation
One of the biggest time drains related to CIS returns is creating, checking, and sending individual statements to subcontractors. The greater the number of subcontractors, the more arduous the process becomes. The Xero CIS add-on enables the bulk emailing of both payment and deduction statements, reducing an otherwise lengthy task to mere moments.
The Xero CIS add-on offers a personalised, value-driven approach. It gives businesses the opportunity to minimise their tax liabilities in a way that is both cost-effective and highly efficient. As such, it is ideal for construction businesses that are growing, streamlining, or concentrating upon developing long-lasting relationships with subcontractors.
If you are looking for ways to drive revenue streams and improve your CIS efficiency, David Howard can help. Please Contact Us to speak with one of our advisers.