CIS subcontractor - The Book-keepers Forum (UK)

popmaria · Newbie

CIS subcontractor

Sharon Eyre · Senior Member

Do you mean on their self assessment ? There is a section that asks how much tax has been deducted for sub contracting

journaljuggler · Newbie

Hello

I have a couple of clients subject to CIS as contractors as well as sub-contractors. I'll tell you how we record it in Sage for sub-contractors - it can be adapted for any bookkeeping/accounting software:

1. Post the gross amount of the invoice to the sales ledger

2. Post a credit note to the sales ledger for the CIS tax deducted (use a nominal code which corresponds to the balance sheet - I use 2230 in Sage).

At the end of the tax year/accounting period, you can then report how much CIS tax has been suffered.

Hope that helps?

Lady of Ledger · Veteran Member

An alternative way of recording the CIS suffered is to record the 'actual' payment received (which will be 20% less than the invoice) in the normal way, then receive the remaining amount to a specifically set up current asset account. This keeps a track of the CIS suffered that can go on the self assessment of a sole trader.

If your client is a limited company that has employees - CIS suffered can be offset against Tax and NI deducted that has to be paid to HMRC.