The Construction Industry Scheme (CIS) means contractors verify subcontractors with HMRC, usually deduct tax from their payments and report each month what they paid.
Before you start
- A third-party CIS module for Sage 200 (for example Sicon CIS)
- Your business registered as a contractor with the Construction Industry Scheme (CIS)
The Sage 200 way
Where to find it: Third-party CIS module installed in Sage 200 (Sicon CIS). Sage 200 itself covers CIS reverse charge VAT rates.
- Sage 200 help says full CIS compliance needs a third-party CIS module. The built-in part is the CIS reverse charge VAT rates in Accounting System Manager > Settings > VAT Rates.
- Install a CIS module such as Sicon CIS. Sicon says it lets you verify subcontractor details and submit a return from within Sage 200.
- Flag each supplier as a CIS subcontractor and record their details on the supplier record (Sicon).
- Enter the purchase invoice. For a flagged supplier Sicon creates a purchase credit for the tax based on labour.
- Each month send the CIS return (CIS300) to HMRC by the 19th after the tax month ends. The 20% registered rate, 30% unregistered rate and 0% gross payment rate come from HMRC when you verify the subcontractor.
- Give each subcontractor a payment and deduction statement within 14 days of the end of the tax month.
Limits in Sage 200
- The Sage 200 help states a third-party CIS module is needed for full CIS compliance. Sage 200 does not file the CIS300 return on its own.
- Sage 200 CIS reverse charge rates cover VAT only. They do not work out CIS deductions.
- CIS applies to UK companies and not Ireland.
Good to know in Sage 200
- CIS deductions and the CIS VAT domestic reverse charge are separate. Deductions still apply to subcontractors as usual and the reverse charge applies to the whole service including materials.
- Sicon states its CIS module has HMRC recognition for filing a valid CIS300 return. Sicon also records the subcontractor public liability insurance expiry date.
Common mistakes
- Expecting the built-in CIS reverse charge VAT rates to work out CIS deductions or file the CIS300.
- Paying a subcontractor before verifying them with HMRC, so the deduction rate is unknown.
More help
- How to report contractor payments for TPAR from MYOB Acumatica
- How to report contractor payments for TPAR from Sage 300
- How to report contractor payments for TPAR from Sage Intacct
- How to check a supplier's VAT number in Sage 200
- How to set up a new supplier safely in Sage 200
- All Sage 200 how-to guides
- Pulsify setup guides
Sources
Last checked 2026-10-19. Confidence: confirmed.
- desktophelp.sage.co.uk/sage200/professional/Content/ASM/MaintainTaxRates.htm
- desktophelp.sage.co.uk/sage200/professional/Content/General/CIS%20reverse%20charge%20FAQs.htm
- www.sicon.co.uk/product/cis/
- www.gov.uk/what-you-must-do-as-a-cis-contractor/make-deductions-and-pay-subcontractors
- www.gov.uk/what-you-must-do-as-a-cis-contractor/file-your-monthly-returns
Common questions
Can Sage 200 file my CIS monthly return?
Not on its own. Sage 200 help says full CIS compliance needs a third-party CIS module. Sicon CIS is one. It verifies subcontractors and submits the return from within Sage 200.
What CIS deduction rates apply to my subcontractors?
HMRC tells you the rate when you verify a subcontractor. It is 20% for registered subcontractors, 30% for unregistered and 0% for gross payment status. The deduction leaves out materials the subcontractor paid for directly.
Is the CIS VAT reverse charge the same as CIS deductions?
No. Sage 200 builds in CIS reverse charge VAT rates. CIS deductions are separate and still apply as usual. The reverse charge covers the whole service including materials, while deductions leave out materials.
Pulsify setup guides
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