CIS and reverse charge, handled on the invoice
Verify subcontractors against HMRC, split labour from materials, apply the correct deduction rate, and get domestic reverse charge VAT right before the invoice reaches your ledger.
| Line | Net | CIS |
|---|---|---|
| Labour | £18,400 | −£3,680 |
| Materials | £7,250 | £0 |
| VAT · domestic reverse charge | £0 | — |
| Payable | £25,650 | −£3,680 |
Is CIS still a manual check?
Someone logs into the Gateway, checks a subcontractor, and writes the result down somewhere else.
Deducting on the wrong base is an error you only find when HMRC or the subcontractor does.
Domestic reverse charge and foreign supplier VAT are handled differently by whoever happens to process the invoice.
See how growing contractors are using Coreloops to handle CIS and VAT.
Real HMRC subcontractor verification
Verify subcontractors against HMRC through the Government Gateway and keep the verification result and match status on the subcontractor record, rather than on a note beside it.
| Line | Net | Deduction |
|---|---|---|
| Labour | £12,600 | −£2,520 |
| Materials | £9,840 | not deductible |
| Net payable | £22,440 | −£2,520 |
Deductions on the right base
Split labour and materials on the invoice, apply the deduction rate that matches the subcontractor's status, and carry the net figure through to the payment and the cost report.
Domestic reverse charge, applied correctly
Domestic reverse charge and foreign supplier VAT are handled at line level, so what posts to your ledger is right the first time rather than corrected at the VAT return.
What the industry is saying
How contractors are taking control of their costs and contracts with Coreloops.
We had CEs there with our approval attached to it. There was no way for the client to dispute it.
Samuel Maddison
Director, Project Safe
One platform for costs and contracts
Book a discovery call
We'll learn about your current setup and show you how Coreloops could help you verify subcontractors and apply CIS and VAT correctly.
