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April 22, 2023
Question

CIS

  • April 22, 2023
  • 1 reply
  • 0 views

I have invoiced a contractor for the work I carried out and he has sent me a invoice showing that he has deducted my Tax out of the amount how do I show this as now my invoice doesn't match my banking amount?

 

Thank you in advance

1 reply

April 22, 2023

Welcome to the Community forum, @Fordy711! It's a pleasure to have you here. I'd be glad to assist you with this type of transaction in QuickBooks Online. 

 

It's easy to track CIS withheld in QuickBooks Online, Fordy711. Let's begin by recording the payments you make to the contractor and the payments you receive from them. Then, submit a CIS return to HMRC. Here's how:

 

  1. Go to the Taxes menu, then choose CIS.
  2. Click File return for the period you wish to submit to HMRC.
  3. Fill out and verify the necessary details, then click Submit to HMRC.
  4. Your user ID and password for the Government Gateway will be required.
  5. Hit Sign in and submit. The HMRC and QuickBooks connections will start. 
  6. Close the message once HMRC accepts your submission to go back to QuickBooks.

 

Once done, record the payment you made to HMRC. It will show up in your reports as having paid HMRC taxes, and it will help you match and categorize transactions in QuickBooks so that your books balance at the end of the year. Please follow the steps below:

 

  1. Select + New, then make an expense.
  2. Enter the name you created for HMRC in the supplier field.
  3. Choose the bank account and the payment method from which you have paid HMRC 
  4. Navigate to the payment's date.
  5. Under the Category, select the CIS Payments to HMRC account in the table section.
  6. Type in the amount you have paid HMRC, then hit Save and Close.

 

Check out this article for detailed processes and information: File a CIS return in QuickBooks Online.

 

You need to unfile your return if you have to modify any CIS transactions in a closed period. Check out this article to learn how: Unfile a CIS return in QuickBooks Online.

 

We're available 24/7. Reach out to us if you have further clarifications or need assistance with any QuickBooks-related concerns. Keep safe!