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Gonzosgone
June 18, 2021
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Accounting for CIS suffered

  • June 18, 2021
  • 1 reply
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After submitting payroll FPS and EPS reflecting CIS suffered to HMRC I’ve paid the balance to HMRC via a direct debit. After matching that payment to HMRC payroll liabilities I’m left with a balance sheet entry for HMRC payroll liabilities which (unsurprisingly) matches the CIS suffered. How do I reflect the ‘benefit’ of CIS suffered in my accounts?

Best answer by Archie_B

Hi, did you see my (sadly late) reply to your post? I've still got a problem.


Thank you for following up, Gonzosgone.

 

Yes, I appreciate the details you've given us about this.

 

The CIS suffered summary would show the CIS deductions withheld by contractors. Since it included the journal entry you created for HMRC payroll liabilities, I suggest you consult an accountant for additional guidance on how to properly account the journal entry. 

 

That being said, there may be additional accounts that needs to be debited and credited to clear the balance sheet while making sure your reports for CIS suffered are accurate. 

 

Post your concerns or click the reply button for any follow-up questions. I'll keep an eye on your response. Have a great day.

1 reply

A
Ashleigh1
June 18, 2021

Hello Gonzosgone, 

 

Welcome to the Community page, 

 

So you can journal it out, to show it, if you are not sure how to do the journal and need assistance with creating the journal entry then you will need to speak to an accountant and they will be able to help and advise you how to do it. 

G
GonzosgoneAuthor
June 20, 2021

So I journal a debit from CIS suffered to HMRC Payroll liabilities? If I do that the balances look correct but obviously when I run a CIS suffered report the reduction in CIS suffered is reflected. I'm concerned that when I generate next months EPS for CIS then the cumulative CIS suffered totals reported to HMRC will be incorrect. Am I being neurotic or am I doing something wrong?

C
ChristieAnn 11
June 20, 2021

Hi there, Gonzosgone.

 

Welcome back to the thread. I'll share additional information on how CIS works in QuickBooks Online.

 

When you turn on CIS, we’ll create the accounts you need to be able to track it. That means, when you create CIS transactions we’ll calculate the CIS withheld. Then, creating a journal entry does not or won't affect the CIS reports in QBO. You'll have to use the CIS codes and items in order for it to affect the CIS Screen. With this, it will reflect in your reports accurately and you're able to file this transaction online. To see additional information on how CIS works, you can click on this article: CIS in QuickBooks Online.

 

Please refer to this article to see different information on how you can pay Income Tax and how Net VAT and CIS payments operates: Understanding Income Tax.

 

Let me know if you have other concerns with QuickBooks. I'm always around to lend a helping hand. Have a nice day ahead.

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