CIS and VAT, handled per job – so tax never surprises you

CIS deductions tracked automatically

Under CIS, contractors deduct tax from payments to subcontractors for labour – at the time of writing 20% for registered subcontractors, 30% for unregistered ones and 0% for those with gross payment status. Deductions apply to the labour part of a payment, not materials. Profit Engine records the deductions on each job so the figures are ready when your monthly CIS return is due.

• CIS deductions per subcontractor and per job
• Labour and materials split correctly on each payment
• Deductions taken from you by main contractors recorded too
• Clear figures for your accountant every month

The VAT domestic reverse charge

Since March 2021 many building and roofing services supplied between VAT-registered construction businesses fall under the domestic reverse charge, where the customer accounts for the VAT instead of the supplier. Work for end users such as homeowners is charged VAT as normal. Profit Engine lets you mark each job correctly so quotes and invoices show the right VAT treatment.

Retentions you will not forget

Retentions – often around 3–5% of the contract value held back until completion or the end of the defects period – are easy to lose track of. Profit Engine records each retention with its release date and puts it on your cash flow forecast.

Always check the rules

Tax rules change. Profit Engine organises the numbers; your accountant confirms the treatment. Check current CIS and VAT guidance on GOV.UK or with your accountant for your situation.