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CIS Proceedures

MonsoonMonsoon Font Of All KnowledgeFMAAT, AAT Licensed Accountant Posts: 4,071
I've very recently 'inherited' CIS work, which was previously dealt with by a partner in my firm who has now left.

I have only a basic working knowledge of CIS and need to put proceedures in place to make it more efficient (it wasn't before).

As I see it, I need to do the following:

1. Request details of subbies to be paid in the period
2. Calculate deductions and create deduction vouchers to give to subbies (verify if necessary)
3. Give client amount to pay subbies and deduction vouchers to go with
4. File return with HMRC

Am I missing anything? My payroll software can do CIS so I will be looking to do it in that, but I just want to check that the general proceedure is correct, and whether anyone has any practical tips for dealing with it.

Thank you :)

Comments

  • PAMDILLPAMDILL Experienced Mentor Registered Posts: 716
    Seems alright just make sure that the details given to you regarding the subbies are correct. Some subbies register themselves with HMRC under CIS as one name then issue invoices under another name and want paid under a third.

    This causes confusion with verification and reconciling the monthly returns.
  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    Monthly return online for CIS deductions after 5th and details of the payment due to be paid to the contractor, payable by 19th.
    Apart from that it sounds as though you know where you are going with this one.
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Thanks both of you :)
    Glad I'm on the right lines!
  • blobbyhblobbyh Font Of All Knowledge Registered Posts: 2,415
    I know JodieR is - or at least used to be - very skilled at CIS procedures. Not sure if she visits the forums much now but do you have her in your AAT Facebook collection? (Just had a look - yes, you do!)
  • JodieRJodieR Experienced Mentor Registered Posts: 1,002
    why thank you blobbyh!
    yes, i do deal with a fair amount of CIS - I've got a 'very nifty' spreadsheet to produce the CIS vouchers. I think that the procedures which blobbyh is refering to is my list of how to account for CIS using quickbooks. I'm sure it could be adapted for other accounting systems but I've never had the need to try. It looks over-complicated for what it is, but once you get used to it it doesn't take long to process, and it's still the only way i can think of to keep track of it all and ensure that the correct amount is declared & paid over. I can email it to you if you like.
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    Thanks Jodie that would be much appreciated! :)
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