Accounting for CIS
I have just taken on a new client who has to pay CIS for the sub contractors he users. I understand that he needs a UTR number for each subbie, then HMRC tells him what rate of deduction to make from their payments. There is a monthly return to HMRC & the CIS deductions are paid across to HMRC at the same time as his monthly PAYE & NI Payments. He is now VAT registered. I have set up Sage instant accounts for him, so do I set up a separate nominal code for CIS in the same range as PAYE & NI? Am I correct in saying that, for example, if he is invoiced £1000 + vay by a subbie and the deduction rate is 20%, the subbie is paid £800, VAT £200 & CIS £200?