Invoice a contractor under CIS
Updated 2026-09-05
Invoice a contractor under CIS
Once you've told BusyBee Hub your CIS status, invoicing a contractor works the same way as any other invoice; the deduction is worked out for you.
Mark the contractor
Open the contractor's contact (or create a new one) and tick This customer is a CIS contractor. Add their Employer reference. It's printed on their payment and deduction statements, in the form `123/AB56797`.
Mark the labour on your invoice
Start a new invoice for the contractor. With CIS on, you'll see Apply CIS deduction ticked automatically for a contractor you've marked. Untick it if this particular invoice isn't covered by CIS.
Each line has a Labour checkbox. Tick it for work you did; leave it off for materials, plant hire or anything else that isn't subject to the deduction; CIS is only ever deducted from labour.
The totals show:
- Labour and Materials (added up from your ticked and unticked lines)
- Subtotal and VAT (if you're VAT registered)
- CIS deduction (20% or 30% of your labour, at the rate your CIS status sets)
- Amount payable (what the contractor actually pays you)
What the contractor sees
The invoice, its PDF and the link the contractor opens all show the same breakdown, ending with the amount payable, so there's no argument about what to pay.
Recording the payment
When the contractor pays you the net amount, record the payment as usual (or let a matching bank transaction do it for you). BusyBee Hub realises the CIS deduction for that tax month automatically; you'll see it on the invoice's activity log and on the CIS page.
A part payment realises the deduction proportionally; the payment that finally settles the invoice takes whatever's left, so the two always add up to the deduction shown on the invoice.
