System options for the CIS Subcontractors module are selected and entered on the CIS Subcontractors Options window.

The options are stored on four tabs cards covering Tax Rates, Analysis Codes, Company Defaults and Submissions.

The tax rates include the Standard Rate of tax, the Higher Rate of tax and the CITB Levy.

The CIS Tax Rates should be entered against the date from which they will become effective.

Enter the Purchase Analysis codes that are to be used to record any CIS tax that you deduct and the CITB Levy. These must be Purchase Discount type analysis codes and can be created 'on the fly' by clicking the search button.

Default CIS Tax Analysis - A Purchase Discount type analysis code will be used to post the double entry for any tax deducted under the CIS rules. This will enable the liability to be accrued on the Balance Sheet for payment to HMRC. You should enter the code here or select it from the Analysis code list opened by clicking on the search button. Only Purchase Discount type codes will be offered in the list. You can create a new analysis code from the list window by clicking Insert.

Default CITB Levy - A Purchase Discount type analysis code will be used to post the double entry for any CITB Levy deducted under the CIS rules. This will enable the liability to be accrued on the Balance Sheet for payment to the CITB (Construction Industry Training Board). You should enter the code here or select it from the Analysis code list opened by clicking on the search button. Only Purchase Discount type codes will be offered in the list. You can create a new analysis code from the list window by clicking Insert.

This tab will store the information required by the system to enable the CIS transactions to be reported correctly.

Also known as Employer PAYE reference, this reference must go on all payment advice statements issued to sub-contractors paid under deduction. This reference enables HMRC to link the deduction back to the contractor scheme in case of a query. The reference will be of the form 123/A2345 where 123 is the Tax District reference and A2345 is the Tax Reference. The tax reference must be entered in the correct format.

Enter your UTR (unique taxpayer reference) as a contractor operating under the Construction Industry scheme. This is a 10 digit number and is subject to a validation check. You will not be able to save the options if an invalid UTR has been entered.

HMRC will issue you with a thirteen character Accounts Office reference in the format 123PW12345678. This reference must be shown on every monthly return and is required when making payment of deductions from subcontractors.

Tick this option if you wish invoices for Suppliers who are operating under the CIS rules to be authorised before payment. If ticked, you will not be able to process payments for these suppliers until the invoices are authorised in the Subcontractor's Invoice Authorisation window. If unchecked, the Subcontractor's Invoice Authorisation will be unavailable and you will be able to process payments without this intermediate step.

This option allows you to decide whether or not to apply the Levy to Tax Withheld; default is unchecked. When enabled, the following do not include the CITB Levy % in the calculation of Tax Withheld so that you are in compliance with legislation:

Submission of monthly returns to HMRC can be done electronically only.

You will need to enter a User ID and Password, these will be provided when you register with HMRC to transmit documents electronically and will be specific to CIS submissions.

You will need to register before you can file on-line or transmit documents to HMRC by XML. This can be done at the Government Gateway (www.gateway.gov.uk).

The Government Gateway is the website you use to register for online government services. It is an important part of the government's strategy of delivering 'joined up' government, enabling people to communicate and make transactions with government from a single point of entry. Your User ID and Password will be issued when you register with the Government Gateway, the password will be specific to your registration for CIS submissions.