Skip to main content
G
Graham walton
November 16, 2021
Solved

CIS deduction on invoices

  • November 16, 2021
  • 1 reply
  • 0 views

Is there a way to have a customer set up as a CIS contractor but not show the deduction on their invoice?

I have 1 client who uses an automated system which is reading the amount payable figure then deducting 20% from it despite the fact that it has already been accounted for. 

 

They said other suppliers show the gross amount although I'm not sure what software any of them use

Best answer by MirriamM

Hello again, Graham walton.

 

You're right that there is no way to remove the deduction from the invoice if a customer is set up as a CIS contractor. 

 

As for your suggested workaround, it can work, but I suggest contacting an accountant before doing so. They can verify if it won't cause any issues when a tax audit comes. If you don't have an accountant, you can find one through this link: Find an accountant.

 

As always, feel free to visit our QuickBooks Community help website if you need tips and related articles in the future.

 

Please keep me posted if you have any other concerns about this process. I want to make sure everything is taken care of for you. You can reach out to the Community at any time. Take care and have a great day!

1 reply

R
Rea_M
November 16, 2021

I'm happy to share some insights about CIS deduction on your invoices in QuickBooks Online (QBO), @Graham walton.

 

When you start using Construction Industry Scheme (CIS) in QBO, the system will calculate your deductions, track your withheld or suffered amounts, and create the necessary reports for HMRC. With this, once you have a customer that's set up as a CIS contractor, QuickBooks will automatically show the deduction on their invoices.

 

To learn more about the CIS method of withholding tax and national insurance contributions, I'd recommend checking out this article: CIS in QuickBooks Online. It also includes topics about creating CIS transactions and available reports in QBO.

 

Also, to further guide you in managing CIS transactions in QBO, you can refer to these articles:

 

 

Please don't hesitate to comment below if you have other concerns about the CIS scheme in QBO. I'll gladly help. Keep safe, and I wish you continued success, @Graham walton.

G
Graham waltonAuthor
November 16, 2021

So there is no way of removing the deduction from the invoice sent to the client whilst still having them set up as a CIS contractor ? 

I suppose the only way around this would be to create the invoice but not send it , then manually create a pdf invoice to send to the client . Matching the payment with the original QB invoice ? 

M
MirriamMAnswer
November 17, 2021

Hello again, Graham walton.

 

You're right that there is no way to remove the deduction from the invoice if a customer is set up as a CIS contractor. 

 

As for your suggested workaround, it can work, but I suggest contacting an accountant before doing so. They can verify if it won't cause any issues when a tax audit comes. If you don't have an accountant, you can find one through this link: Find an accountant.

 

As always, feel free to visit our QuickBooks Community help website if you need tips and related articles in the future.

 

Please keep me posted if you have any other concerns about this process. I want to make sure everything is taken care of for you. You can reach out to the Community at any time. Take care and have a great day!

Terms & ConditionsAccessibility statement