Can anyone steer me in the right direction please? I'm going round in endless circles and can't see the way out.
I want to post Sub-contractor invoices into Sage 50 so that individual remittances can later be recorded. (Earlier, these invoices had been processed separately using 12Pay. This recorded the net payments owing to the individual subcontractors and submitted the relevant PAYE information to HMRC).
As a live example, a CIS sub/cttor submits to my client an invoice made up of: £1200 labour £1630 materials £495.25 VAT.
Client sets aside 20% of the labour cost for PAYE (£240) and notes the net amount he must then pay the sub/cttor (3085.25). Later, he remits this to the sub/cttor and pays the PAYE to HMRC.
How do I post this into Sage? This is what I'm reduced to:
1. In sub/cttor (Supplier) account, post the invoiced amounts for :
VAT element on full labour cost (Net amount =£0 - Code T2 - VAT = £210.00) Full labour cost less PAYE (£960 - Code T2 - VAT = £0) PAYE due on labour (£240 - Code T9) Full materials cost (£1630 - Code T1 - VAT=£285.25)
2. To take on the tax liabilities, make Journal entries: CR PAYE account £240 CR Purchase tax control account £495.25
3. Later, when settling both liabilities, from the Bank account post: a) £240 to PAYE account b) £3085.25 to sub/cttor account
This just seems so cumbersome; I must be missing something.
