Best Practices for CIS Subcontractors
These tips help you get the most out of Aarvo as a UK Construction Industry Scheme (CIS) subcontractor.
Track CIS deductions as they happen
Every time a contractor pays you, they deduct CIS tax at source. Log each CIS statement in Aarvo as soon as you receive it - the gross amount, materials, deduction amount, and net paid. This keeps your CIS records accurate and means your returns are ready when filing time comes.
Record deductions per contractor
Aarvo tracks CIS income and deductions per contractor. Make sure each statement is assigned to the correct contractor so your records match what HMRC holds. Mismatches between your records and HMRC's can delay refunds.
Know your deduction rate
CIS deductions can be at gross payment (0%), standard (20%), or higher (30%) rate depending on your registration status. Make sure your CIS registration status is set correctly in your workspace settings - this affects how Aarvo calculates your returns.
Capture receipts for materials
Materials costs reduce your CIS-taxable amount. Whenever you buy materials for a job, capture the receipt in Aarvo straight away. This ensures your material deductions are accurate and supported by documentation.
Track your mileage automatically
If you drive to job sites, download the Aarvo mobile app and enable location services. Set permissions to "Always Allow" and Aarvo will automatically detect and log your trips in the background.
Swipe right on a trip to mark it as business, or left to mark it as personal. Business trips are calculated at HMRC's approved mileage rates and added to your deductible expenses automatically.
Handle mixed-use bank accounts
If your bank account is used for both business and personal spending, make sure to categorise each transaction correctly. Business transactions go through to reconciliation and appear in your returns. Personal transactions are excluded from all tax calculations and reports.
Keep reconciliation current
Your CIS figures are only as accurate as your reconciled data. Unreconciled transactions are not included in reports or returns. Reconcile regularly - weekly if possible - so your numbers are always up to date.