How to account for CIS Deductions in Sage Accounts?

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DanPartumis
DanPartumis Registered Posts: 1
in Chat and off-topic discussion
Hi All,

I recently started working for a Limited Company who is registered for CIS. The issue has been that nobody here has known how best to record CIS deductions from our customers/clients in our accounting software, and there are differing opinions from people here on how it should be done, all of which seem quite confusing and convoluted. We offset the CIS deductions from our PAYE liability as per HMRCs guidelines, which I think is what is adding to confusion.

I would appreciate if anyone who has a fairly simple process for accounting these transactions could help with this and could provide a detailed step by step how to guide?

We use Sage 50 Accounts Professional 2014.

Thank you

Dan

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  • connahh97
    connahh97 Registered Posts: 2
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    Hi Dan,

    I currently work for a company who is registered for CIS and we have problems almost every month!! Whether it be through the nominal, the online returns or differences in payment values!! And we've been doing it for years!

    Currently run all our subcontractors through a separate, manual, system on excel and just journal the cos, tax liability and VAT through at the end of every month. It's a long winded way but at the moment its the only way we can think of doing it.

    There is some talk of us moving it all on to the system, probably through Sage Construct, but I get the feeling this is a long way off.

    I also got an e-mail last month suggesting that HMRC are going to attempt to make everyone have a system in place to upload subcontractors, a bit like a payroll system but for subcontractors, but I'm not sure of the truth in this.

    But for now it looks like we will just have to get our heads down and do things the hard way!!
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
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    I used to set up dummy bank accounts for CIS deducted and CIS suffered.

    When the invoice is paid pay off the invoice as normal, leaving the CIS balance. Then use the CIS bank account to 'pay off' the CIS element.

    You will then have a running balance on your CIS bank accounts which you can pay off when you pay your PAYE. You could 'pay' the CIS balance to your PAYE control nominal first so that when you pay your PAYE you only have one entry to make from the bank account.

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