My brain hurts or maybe its waterlogged with all this rain! A client has paid a sub contractor without a deduction - even thought I wrote the correct amount to pay in big numbers on the invoice! Figures are:
Materials £130
Labour £520
VAT £130
TOTAL £780
CIS on labour @20% -£104
So should have paid £676 to sub contractor but they have been paid £780.
We have another invoice to pay so I know we can take the over payment of the next invoice but I am struggling to figure out the correct figures to put on the return for this month. can anyone in the collective help?
Hope it isnt catching.....I always used to put the figures on the returns that appear on the invoice and just dealt with any overpayment of invoices as a separate issue, ie ignored the fact that the client paid the wrong amount to the subbie! Did you put £104 on last months return or are they both going on this?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
No problemo! Have you got it all sussed now? With £104 on April and £40 on May return. Plus writing the reminder to deduct £144 in even bigger letters than usual on the invoice (in fact dont give him the invoice - just the figure.) I have also usually done a note with the subbies payment slip about the fact he was overpaid on his invoice and it will be deducted from the next (April) plus a reminder of that fact (May) - just saves the usual questions later.
Hope that helps
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
