I am new to CIS/sage and I am wondering if anyone can help me out with a problem Im having?
We have worked for another contractor on a subcontractor basis and I am having trouble Invoicing (showing the CIS deducted) If i show it as a deduction it deducts before VAT, it needs to show as a deduction to the net amount.
You don't need to show the CIS deduction on the invoice, but you do need to differentiate between labour and materials as CIS is not deducted from the materials element. When you receive the payment and the CIS certificate enter a credit for the tax on the customers account coded to whichever HMRC balance sheet account you are using.
If you are working in construction beware of self billing and for contracting, applications for payment (in these cases you may not be able to submit a standard invoice) and of course whether the work is zero rated (new builds).
Ignore that last bit if it doesn;t apply to you - Hope I've not confsed you (I tend to get a bit carried away) and that this helps !!
Hi, thanks for your replies. I have done as you suggested and raised a credit for the tax, but now i have this money still on the customers account... any suggestions? Its probably really simple but i am V New and have a lot to learn....
