Hi. I get paid net (-20%) under CIS. My customer wanted to see the invoice as gross plus VAT, he'll make the deduction.
I allocated a 20% credit of the invoice price at time of invoicing (I'm 95% sure I got that from the CIS help section, cant find it now) , and have now been paid, and have recorded the payment, but what do I do with the credit...Many Thanks. Mat

Hi Mat,

Yes we recently changed the help page to only show the deduction as a negative line item. However, you can still use the 'credit note' method. I assume that 20% of the invoice remains outstanding, so just allocate the credit to the invoice like this:
http://www.solaraccounts.co.uk/help/how-to-allocate-a-credit-note.php

Let me know if you need more information.

Cheers,

Thought i may help this user with how we handle CIS deductions as a contractor (his customer) You should invoice a standard invoice with labour and materials seperated and sub totalled then add the vat. The main contractor (customer) has verified from HM customs what deduction should be made and they will then deduct 20% of the labour element only, then add back the vat element to pay you. They will enter a credit on their accounts for the deduction and allocate against your invoice posted to their paye/ni nominal account. When they pay you, they would issue a remittance showing the full invoice less the cis deduction made so you have a record for your tax records. This is what we do and it works fine.

Hope this may help.

Rgds Mike

Hi, I'm trying to use the credit note method of recording the CIS withheld by our customer where we are the contractor. I managed up the point where the helpnote tells me to "Apply to Invoice" - which invoice? I thought perhaps the invoices the withheld CIS tax relates to but it won't let me do so. Help please! Thanks