What is CIS and how does Havnwright handle it?

CIS (Construction Industry Scheme) is the HMRC rule that says, when one contractor pays another for construction work, the paying contractor must deduct tax at source and pay it directly to HMRC. The amount deducted depends on the sub-contractor's status:

• Verified at 20%: registered with HMRC, no problems. The default.
• Verified at 30%: not registered, or has compliance issues. Higher deduction.
• Gross payment (0%): large sub-contractors with proven turnover. No deduction.

CIS applies to most renovation and construction trades. It does not apply to architects, surveyors, engineers, or work for private homeowners (only contractor-to-contractor payments).

How Havnwright handles CIS

CIS handling is included from Professional tier upwards.

When you record a payment to a sub-contractor:

1. We look up the sub's CIS status (from your address book; you set their status when adding them).
2. We compute the deduction automatically: gross less materials less the relevant % of the labour portion.
3. We produce the CIS payment statement PDF to send to the sub.
4. We log the deduction in your monthly CIS return.
5. At month end, the app gives you a single CIS return summary to upload to HMRC.

What we do NOT do

• We do not file your CIS return directly with HMRC on your behalf. You still submit it through HMRC's gateway or via your accountant. We just make the data easy to assemble.
• We do not verify sub-contractor status for you in real time. You enter what HMRC told you, and we apply it.

Setting up

1. Go to Settings → CIS.
2. Enter your UTR and HMRC reference.
3. Confirm your payment day (usually end of month).
4. Add sub-contractors via Job Tools → Suppliers and set their CIS status on each one.

Caveats

• The percentages here are correct for 2026. HMRC can change them; we update when they do.
• This article is not tax advice. If you are setting up CIS for the first time, talk to your accountant.