CIS deductions on SA100

jilt Registered Posts: 2,903
My client's year end is 31st July. I'm preparing his 2011/12 tax return and just want to check something.

He only started doing any CIS work after I'd prepared his July 2010 accounts and filed his 2010/11 tax return. Now I'v prepared his July 2011 accounts I have found that there were 2 deductions totalling £108.60 in March 2011. I can see there were deductions of £208.20 between April and July 2011 but as yet I haven't received my client's certificate of tax deducted for 2011/12.

Initially my thoughts were that I need the 2011/12 certificate to include the tax deducted in his 2011/12 tax return and that I would have to amend his 2010/11 tax return with £108.60 deducted in that tax year. Now I am questioning this as some of this is tax paid on earnings that aren't included in his 2011/12 tax return.

Can someome confirm which is the correct procedure, I've had a few subbies in the past who just used the tax year for their earnings on each return and haven't had anyone before with an alternative year end with CIS deductions.

Sorry, I know it's Friday afternoon.


  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    My instinct would be that the CIS tax deducted should coincide with the invoices, so would claim on the accounting year, not the tax year. Otherwise nothing will make sense. Hope that helps.

  • jilt
    jilt Registered Posts: 2,903
    T.C. wrote: »

    Yeah me too! Thanks TC

    That was my instinct too at first but then I thought it won't tie up with the info filed by the contractors.

    Sorry had to edit there as hit the button in error
  • peaman
    peaman Registered Posts: 123 ? ? ?
    I would claim the £108.60 in the 2011/12 return and include a note on the SE pages stating that the CIS tax claimed includes £108.60 for the month ended 5 April 2011 and include the contractors name and address.

    I have done this a number of times with amounts larger than £108.60 and I have never had a problem.
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624
    I'm sure I've read somewhere that you have to claim the cis by the tax year not the accounting year, I'll see if I can find where i saw that.

    Edit: It states on the self assessment notes that the deductions are entered for the tax year. Obviously that means a mismatch which doesn't make sense but I guess it is easier for them to check deductions due. We only have one client with a different accounting period to the tax year and cis deductions so I had an awful fear that we had done it wrong and have spent ages trying to look it up!!!

    Apologies if I have misunderstood what you are asking!
  • jilt
    jilt Registered Posts: 2,903
    Thanks Annette,

    No you haven't misunderstood at all.

    This was where I was arguing with myself, if deductions were entered for the tax year it included deductions for earnings that weren't included in the return. But if deductions were entered according to the financial year HMRC wouldn't be able to match them to the contractor. Thanks for looking it up, I couldn't even find the SA notes!

    @Precisetax - I will try that, they can only reject it and tell me to amend the previous year. Thanks
  • peaman
    peaman Registered Posts: 123 ? ? ?
    Just to confirm, the CIS tax should definitely have been claimed in the tax year that it was deducted, the CIS tax was deducted in March 2011, so the contractor should have included it in their contractors monthly return for the m/e 05.04.11. The subbie should therefore have included in their 2011TR.

    However, as the amount of CIS tax that you are claiming is so small, HMRC should not have a problem just offsetting this in 2012, as long as you include a note stating what you are doing.
  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    My understanding is that CIS is on payments in the tax year only.

    Not financial year, not on an invoice basis.
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