CIS pain on behalf of sole trader - how to record it

KMB

I am setting up the books for a sole trader and one of the people he is contracted to work with is paying CIS tax on his behalf. How will this be shown in the ledgers to keep track of it correctly? They pay him for labour, materials and VAT, but also deduct the CIS tax off the amount which they pay. Thanks.

Monsoon

Cr sales full amount of invoice.

Payment received:

Dr Bank, Cr Debtors with amount paid
CIS tax:
Dr Tax deducted (misc account - put it to Equity/capital) Cr Debtors to clear the sales ledger.

KMB

That's great, thanks vedry much:001_smile: