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jalexanderplant
April 29, 2020
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Journal CIS Suffered to Payroll Liabilities: HMRC?

  • April 29, 2020
  • 1 reply
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Good evening,

 

I am a sub-contractor and I suffer CIS deductions. For tax year 2019 - 2020 I suffered £1000 of CIS that I am owed by HMRC. £600 of this was used to offset my Payroll bills in the year.

 

1. Should I be journalling each month the amount of CIS suffered used to offset my payroll liabilities? From "CIS suffered" account to "Payroll Liabilities: HMRC"?

 

2. This left a CIS balance of £400. I have requested this refund from HMRC as this was not used against any payroll liabilities by the end of the tax year and this has now been paid to my Current Account. Should I create another journal of £400 from "CIS Suffered" to "CURRENT ACCOUNT" and then match the banking transaction to that?

 

I am still very new to this and I really appreciate and rely on the help provided on these forums - Many thanks!

Best answer by payment after leaving

Hi Becky87

 

You would have to journal the CIS suffered amount to the payroll liability account/s, so the liability accounts are negated. In relation to any refunds issued by HMRC, you will have to create a specific income or equity account and create a deposit and in the account column of 'add funds to this deposit' section select the income/equity account.

 

Steps of how to enter deposit. To do this go to the + new in the top left of Quickbooks>select bank deposit>select the date and the bank account it was received to>in the add funds to this deposit section> where it has account select the income/equity account you're going to use. You do not need to fill in payee unless you want to>click on save.

We'd recommend confirming with an accountant that they are happy with that.

1 reply

B
Becky87
June 2, 2020

Hi, 

 

I've also got the same question as Jalexanderplant.

 

We have had a refund of over 9k, as it can not credit into the CIS suffered account as that is calculating this tax year for each monthly return, how can this be processed on the system?

 

Thanks

P
payment after leavingAnswer
June 2, 2020

Hi Becky87

 

You would have to journal the CIS suffered amount to the payroll liability account/s, so the liability accounts are negated. In relation to any refunds issued by HMRC, you will have to create a specific income or equity account and create a deposit and in the account column of 'add funds to this deposit' section select the income/equity account.

 

Steps of how to enter deposit. To do this go to the + new in the top left of Quickbooks>select bank deposit>select the date and the bank account it was received to>in the add funds to this deposit section> where it has account select the income/equity account you're going to use. You do not need to fill in payee unless you want to>click on save.

We'd recommend confirming with an accountant that they are happy with that.

JamesVTT
JamesVTT
December 7, 2021

Im really sorry John, I need you to simplify this as I do not understand what do you mean. 

 

Please can you do this in a step by step guide. Thanks 

 

I received a refund from the HMRC and I don't know how to process it. 

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