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Adding CIS and DRC to Your Invoices

Learn how to add Construction Industry Scheme line items on your invoices and mark them as Domestic Reverse Charge.

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Written by Product Team
Updated over a month ago

Gas Engineer Software supports invoice creation with both CIS line items and the domestic reverse charge. DRC and CIS can be used together on a single invoice.

CIS (Construction Industry Scheme)

If you are carrying out subcontracted work for a contractor, you will likely need to include a CIS line item on your invoice. This deduction acts as an advance payment towards your income tax and National Insurance contributions.

Adding a CIS line item in Gas Engineer Software is quick and easy. Let's walk through the process.

  1. Create a new invoice, either on the web portal or app.

  2. Click on the "Add CIS Line Item" button. On the app, you need to tap on the cog in the top right, then "Add CIS Deduction".

  3. Next, add the details. Remember that CIS should only apply to labour, not materials.

  4. Your invoice will now have a separate line item, tagged as "CIS Deduction". In the invoice breakdown section, you will see a CIS deduction noted.

  5. Your contractor should then pay the deducted amount directly to HMRC as part of their monthly return, and provide you with a CIS deduction statement that you use as proof when filing your Self Assessment tax return.

DRC (Domestic Reverse Charge)

You may need to mark an invoice as "domestic reverse charge" if you are carrying out work for a contractor under the Construction Industry Scheme (CIS) and both parties are VAT registered. This shifts the responsibility for accounting for VAT from you as the supplier (the tradesperson) to your customer (the contractor).

This is a simple toggle when creating an invoice in Gas Engineer Software.

  1. Create a new invoice, either on the web portal or app.

  2. Toggle the "Domestic Reverse Charge" option so that it is orange. On the mobile app, you will need to click on the cog in the upper-right corner, and then check the box.

  3. In the invoice breakdown, you will now see that the VAT Total is not added to the grand total, as your contractor will be paying it directly to HMRC on your behalf.

    In this example, we have also applied a CIS line item for labour, which adds a further deduction.

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