This isn't a “switch from Xero” pitch
Let's be clear up front: Xero's CIS handling is genuinely good, and CISflow doesn't replace it. Once CIS is enabled, Xero auto-calculates the deduction, and its Contractor add-on files the CIS300 and verifies subcontractors with HMRC. CISflow does none of those things. If you already run CIS in Xero, keep doing exactly that.
What CISflow changes is the step beforeXero gets involved — and that's where most of the manual time actually goes.
The gap Xero leaves
Xero's CIS engine works from figures that are already in the system. It calculates and reports beautifully — but it assumes someone has already keyed the data in. For a received subcontractor invoice, that someone is you. Every month, for every subbie invoice, the manual part is the same:
- Open the subcontractor's PDF, scan or photo invoice.
- Work out which part is labour and which is materials (the deduction never touches materials).
- Confirm the right deduction rate for that subcontractor.
- Type the gross, labour, materials and deduction into Xero.
Xero doesn't read the received invoice for you — that's simply not what it's for. So the reading, splitting and re-keying stays manual. That's the gap, and it's exactly where errors creep in: deducting on materials by mistake, or transposing a figure on the way into the ledger. (For the rule itself, see the CIS deductions guide.)
Where CISflow fits — the front door, not a replacement
CISflow is the front door to that step. You forward a subcontractor invoice and it reads the document and extracts the CIS fields — UTR, the labour/materials split, the deduction rate, the deduction amount and the net pay. You review and approve each figure, and then a clean, correctly-split CIS bill goes straight into Xero (or out as CSV).
From there, Xero does what Xero does best: it calculates, reports, and — with the Contractor add-on — files your CIS300 and verifies subcontractors. CISflow feeds Xero clean data; Xero takes it the rest of the way. Nobody switches accounting software, and nobody re-types a subbie invoice.
Side by side — the workflow, split in two
The honest framing is that these tools own different halves of the same job. The table shows who does what:
| Step in the CIS workflow | Xero CIS | CISflow |
|---|---|---|
| Read the subbie's PDF/scan/photo invoice | No — you key it in | Yes — extracts the fields |
| Split labour vs materials from the invoice | Assumes it's already entered | Yes — extracted for review |
| Calculate the CIS deduction | Yes — auto-calculates once data is in | Extracts it; defers the calc engine to Xero |
| You review every figure before it posts | Yes | Yes |
| File the CIS300 return | Yes — with the Contractor add-on | No |
| Verify subcontractors with HMRC | Yes — with the Contractor add-on | No |
| Best thought of as | The CIS calculation + filing engine | The front door that fills it |
Xero's CIS capabilities above reflect its published behaviour (native CIS calculation plus the Contractor add-on for filing and verification) at the time of writing; check Xero's own documentation for the latest. CISflow exports to Xero; it does not file on your behalf.
Being honest about CISflow's limits
Because CISflow only owns one half of the workflow, the honest picture is:
- It does not file your CIS300 and does not verify subcontractors — that stays with Xero (or HMRC directly).
- You review and correct every extracted figure before it posts. Extraction is good, not infallible, and it isn't a substitute for your eyes.
- It's new and in early access — a focused tool, not a years-old platform.
- If you only handle a handful of subbie invoices a month, keying them straight into Xero may be all you need.
Use both
The simplest mental model: CISflow reads and splits; Xero calculates and files. If reading PDFs, splitting labour from materials and re-keying into Xero is quietly eating hours each month, CISflow removes that — and hands Xero exactly what it wants.
Want to see the numbers first? Use the free CIS deduction calculator — enter labour, materials and the rate, and it returns the deduction, net pay and the CIS300 figures, no sign-up needed.
CISflow is live and in early access. Start free to put a real subbie invoice through it and watch a clean, split CIS bill land ready for Xero.
Keep reading
Xero is a trademark of its respective owner; CISflow is not affiliated with or endorsed by Xero. This page is a fair comparison for the CIS job, not tax advice. CISflow is a data-entry tool, not an accountancy or tax service — you remain responsible for figures submitted to HMRC, and should always verify a subcontractor's status and rate with HMRC.
CISflow vs Xero CIS — common questions
- Does CISflow replace Xero's CIS feature?
- No — and it isn't trying to. Xero is excellent at calculating CIS deductions once data is in, and its Contractor add-on files the CIS300 and verifies subcontractors with HMRC. CISflow doesn't do any of that. CISflow handles the step before: reading the subcontractor's invoice and splitting labour from materials, then handing the clean figures to Xero. They're designed to be used together.
- What is the gap Xero leaves?
- Xero's CIS works from data that's already been keyed in. Someone still has to open each subcontractor's PDF invoice, work out which part is labour and which is materials, find the right deduction, and type it into Xero. Xero doesn't read the received invoice for you. That manual reading-and-keying step is exactly the gap CISflow fills.
- Does CISflow file my CIS return?
- No. CISflow prepares and exports clean CIS figures; it does not file the CIS300 or verify subcontractors with HMRC. That's where Xero's Contractor add-on comes in. CISflow gets the invoice into Xero correctly split and ready; Xero calculates and you file. You stay in control of what's submitted to HMRC.
- Why not just key invoices into Xero directly?
- You can — and if you only handle a few subbie invoices a month, that may be perfectly fine. CISflow earns its place when the volume and repetition of reading PDFs, splitting labour from materials and re-keying into Xero is eating real time each month, or where a tired hand risks deducting on materials by mistake. It removes the typing, not Xero.