CIS Debtor

lmiddleham Registered Posts: 71 ? ? ?

I'm just doing some CPD on CIS and I found what looks like a good example of how it works here:

One thing confuses me though. Throughout the year a Sole Trader will build up an asset of CIS money that he is owed back. He'll offset this against his tax payable and therefore pay less tax.
The tax he pays, or any refund he receives won't go through his sole trader accounts or probably not even into the same bank account.
Therefore, how does that balance get written off in the Sole Trader Accounts? I just can' get my head around what the double entry is!



  • burg
    burg Moderator, FMAAT, AAT Licensed Accountant Posts: 1,441
    CIS is a tax and is not a business expense therefor it is put to drawings and never appears in the sole trader accounts

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