CIS deductions and final accounts.

Steve Wilson

Hello.

Can someone please help me answer a question regarding a sub-contractor?

His employer is making 20% CIS deductions on his pay.

I am compiling his final accounts. It's the first time I have compiled a set of accounts for a CIS paid sub-contractor and need to double-check I have recorded the CIS deductions correctly.

At the moment I have entered the full (net) pay as a credit entry on the statement of profit and loss section of the ETB, with the CIS deductions showing as a debit entry on the statement of financial position of the ETB.

Are my entries correct please? A part of me thinks that I should show the net wage and no CIS deductions.

Thank you for taking the time to read my first post here as a newly licenced member.

Kindest Regards

Steve

Steve Wilson

Mick

Thanks for the reply. So if I use the gross turnover then am I correct in putting the CIS deductions already paid into the Debit side of the SFP?

Steve

Bertie

Ignoring materials and VAT.


If you've earned X gross.
You've received Y in the bank.

You know Z is a Dr.

Pen, paper and a T account makes everything black and white.