I am rarely do credit notes and cannot get my head around something, would anyone be so kind as to advise me? I will explain it as simply as possible but appreciate it may be difficult to advise on something so specific, I have attached the C/N workings so far!
I need to issue a credit note on an invoice that we have signifcantly reduced. The client has already entered the invoice onto thier system, but not paid it nor have they paid any of the CIS tax deduction to the taxman yet.
I have created a credit note and I am fine with all the other figures but cannot decide how to represent the reduced CIS figure.
The Labour element of the invoice is subject to a 20% deduction. Originally the labour element was £5,200 it is now reduced to £2,880. The tax to be deducted was £1,040 it would now be £576. I assumed that I should therefore put -£476 on the credit note but the client phoned and said that was incorrect. Should I put the CIS figure as £576 and not include the figure in the total credit amount?
