My client gets CIS deducted from his invoices by his clients. How do I deal with this? Please can you explain step by step as I am not very skilled! For example my client sends an invoice for £100 gross. He only gets paid £80.00 because 20% CIS has been withheld. How do I record this in SAGE?
Huge thanks to anyone who takes the time and trouble to help.
Hi Sarah, like many on here I would set up a bank account within Sage (say 1231) and call it CIS deducted.
Post his sales invoices as normal for the £100. When he is paid you can then allocate £80 to his business account and £20 to his 1231 CIS account. This way his total sales are recorded, the customer ledger gets updated, the bank is correct and sitting in this pseudo bank account is an amount that should add up to his deductions. At the year end you can clear the 1231 account by debiting drawings and crediting the CIS account.
