Cis

Nikita
Nikita Registered Posts: 14 New contributor 🐸
in General accounting discussion
Hi
Someone I know pays Cis on some of his contract work, he is vat registered. When he does his vat return should he be putting the Labour cost plus vat even though he has obviously had cis on this as well. I have never dealt with cis so unclear to me ! Many thanks ?

Comments

  • douglasstroud
    douglasstroud Registered Posts: 301 Dedicated contributor 🦉
    CIS tax has no impact on the VAT, he should be charging VAT on the total amount before any CIS deductions and this is what is shown on the VAT return.
  • Nikita
    Nikita Registered Posts: 14 New contributor 🐸
    Thank you so much ? I will check think he thought the vat would be the same as the cis amount as both 20% . He is newly vat registered.
  • douglasstroud
    douglasstroud Registered Posts: 301 Dedicated contributor 🦉
    It will be the same amount if it is for a labour only Invoice.
    For example £2,000 labour plus 20% VAT is £2,400 the CIS deduction is only on the labour without VAT so it is £400 leaving a payment of £2,000
    So £400 VAT added £400 CIS tax deducted

Categories

Privacy Policy