Good Morning, I am typing this whilst pretending to watch Postman Pat with my daughter! I have read the posts re this subject and think I understand but just wanted to check. I have just taken on a self employed subcontractor who sends out invoices to his customers for gross and receives them net of 20% CIS tax. Do I post sales invoices for full amount and post 'customer receipt' via bank account net amount and then put the shortfall to another bank account? Presumably you have to show that the debtor has paid in full? But you also have to show that my client has already paid 20% tax on the invoice. Can someone show me how I post the sales receipt on Sage please? Sorry to be so dumb but not sure how to show how the final accounts will show the tax already paid.Some of the posts on the Bookkeepers Forum mention opening a liability account and some mention opening a separate bank account, this is where I am getting confused!! Many thanks
