CIS Supplier Setup

If you work in the construction industry and use subcontractors, you need to configure them as CIS subcontractors in dynamik.app.

Quick Setup

1. Navigate to Contacts > Suppliers
2. Edit the supplier (or create a new one)
3. Go to the CIS tab
4. Toggle CIS Subcontractor on
5. Enter their 10-digit UTR (Unique Taxpayer Reference)
6. Select the correct Tax Treatment:
   • Gross (0%) — registered for gross payment
   • Net (20%) — registered, standard rate
   • Higher Rate (30%) — unregistered
7. Save

After Setup

Once a supplier is marked as a CIS subcontractor:

• Bills — When you create a bill for this supplier, the CIS deduction section appears automatically with the correct deduction rate pre-filled
• CIS Returns — When importing from bills, the supplier's UTR and verification details are pulled through automatically
• Statements — The supplier's details appear correctly on CIS payment and deduction statements

Verifying with HMRC

Before paying a new subcontractor, you should verify them with HMRC:

1. Call the CIS helpline or use HMRC's online service
2. HMRC will confirm the subcontractor's registration status and deduction rate
3. Update the supplier's tax treatment in dynamik.app accordingly
4. HMRC provides a verification number — you can record this on the supplier's CIS tab

Changing Tax Treatment

If HMRC notifies you of a change in a subcontractor's status (e.g. they gain gross payment status):

1. Edit the supplier
2. Update the tax treatment
3. Future bills will use the new rate automatically
4. Existing bills are not retroactively changed