My husband has an accountant for his self-employment Return.
I am not book keeping training, I think that will be obvious, sorry.
I do all my husbands paperwork in preparation for his Accountant.
I use cash Accounting, and every month I ensure his bank balance agrees with his invoices and receipts. There are normally less than 10 entries a month.
My husbands trade is property maintenance, just him with a turnover well below VAT threshold.
He normally works alone but a while ago needed help and used a subcontractor.
We asked his accountant to assist with CIS but was told he does not do payroll,
He suggested that my husband buy payroll software which also calculates CIS.
I was a bit wary but the software was excellent.
The first three CIS payments went better then I expected. The software produced a weekly payslip, a detailed and basic Monthly Statement I must admit to feeling pleased with myself.
However, my husband then used another Sub Contractor and he was VAT registered.
I followed all the instructions, and produced the weekly payslip, and checked it and it made sense:
Invoice £ 890.00
Materials £0.00
VAT £178.00
Due £1068.00
The payslip shows :
Basic £1068.00
VAT Included £178.00
Total payments £1068.00
Amount subject to deductions £890.00
CIS deductions £178.00
Net Payment £890.00
The detailed Payment certificate shows the same.
However as its now the end of the month I prepared the Standard Statement of Pay and Deductions to give to the Sub Contractor but it does not agree with the payslip .
It shows Gross amount (excl VAT ) £890.00
Materials £0.00
Amount Liable to deduction £890.00
Amount Deducted £178.00
AMOUNT PAYABLE £712.00
Can anyone assist where I have gone wrong please as I expect the Subcontractor to ask why there is a difference.
However as its now the end of the month I prepared the Standard Statement of Pay and Deductions to give to the Sub Contractor but it does not agree with the payslip .
It shows Gross amount (excl VAT ) £890.00
Materials £0.00
Amount Liable to deduction £890.00
Amount Deducted £178.00
AMOUNT PAYABLE £712.00
Can anyone assist where I have gone wrong please as I expect the Subcontractor to ask why there is a difference.
Thank you in advance.
Hi Jacky, both are correct. The first is a record of what the subby has been paid, the second is a record of what CIS is due, and what has been filed at HMRC, for which the VAT is not relavent.
On the software I use (moneysoft) it does say amount exc VAT £890 total payable £712
