By the Billoz editorial team · Updated
How CIS deductions appear on invoices
Separate the invoice total, qualifying materials, VAT and the deduction using the contractor-verified rate.
Feature details
A practical Billoz guide based on UK official sources and the product workflow. Review the source links and your own circumstances before acting.
The application stores a CIS-enabled flag and rate and calculates a deduction amount for the invoice. Official rates are commonly 20%, 30% or 0%, depending on verification status.
Billoz does not verify subcontractors, decide which work or materials are within CIS, submit returns or replace contractor deduction statements.
How it works
Enable CIS in the business profile and enter the rate HMRC or the contractor has confirmed.
Prepare the invoice and review labour, materials and VAT treatment.
Check the displayed deduction and retain the contractor statement with your records.
Worked example
A verified subcontractor invoices £1,000 of work including £200 of qualifying materials before VAT. At 20%, the CIS-liable amount is £800 and the deduction is £160, leaving £840 payable before considering any separately treated VAT. The contractor’s deduction statement remains the formal supporting record.
Before treating a record as ready, compare it with the client agreement and its source evidence. Check the client, service period, quantity, rate, currency, tax treatment and payment terms independently. Resolve missing receipts or unclear descriptions while the work is recent. Preview the final document, confirm the intended recipient and keep the issued version in the account. After sending, record delivery, reminders and confirmed payments against the same invoice rather than rebuilding the history from email or chat. Billoz supports that workflow, but the account owner remains responsible for approval, classification and any professional advice required.
What it helps you do
Show the deduction rather than hiding it in a net figure.
Reuse the business CIS setting on relevant invoices.
Keep invoice and payment records together.
Only store tax identifiers and client details that are necessary for your records, and keep account access secure.
Questions and answers
What CIS rate should I use?
Use the rate confirmed through the official verification process: commonly 20%, 30% or 0%.
Is CIS applied to VAT?
CIS is not deducted from VAT. Review official guidance for materials and other exclusions.
Does Billoz verify status?
No. Verification remains outside Billoz.
Does Billoz file CIS returns?
No.
Can I switch CIS off?
Yes. Apply it only to relevant invoices.
Is this tax advice?
No. It is record-keeping functionality and general information.
Related Billoz resources
This is general information, not tax, legal or accounting advice.