I have no experience of accounting for sub-contactors on Sage and would apprecaite some help if possible.
It is a new construction company and I have received an invoice from a subcontractor which includes labour and materials. Do I set them up as a supplier and post the invoice in full or should I post it minus the tax? If I post it in full will it always show that they are being underpaid?
I hope this makes sense and someone can explain the correct procedure.
As you suggested, you should post the invoice in full. Once you've paid the supplier, you can then post a dummy sales credit note (T9) to represent the CIS tax deducted. This will clear the supplier balance. You could post the other side of the dummy sales credit note to the PAYE/NI control account or you might set up a new subcontractor deduction nominal code in the balance sheet.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
Might be worth looking at purchasing Sage CIS module, as usual not cheap, but may be worth it in the long run what with all the potential hassles with CIS
