Question
How do you track CIS deductions and suffered payments and offset the amounts for Ltd company?
We are a limited company under the CIS scheme and are both a contractor and sub-contractor. We are able to offset and CIS deductions against CIS suffered amounts.
Does anyone know how to do this please and how we keep a track of CIS amounts we need to pay?
We started tracking all accounts from May but had a starting balance of £176 that has been deducted from invoices we had submitted in Apr so would want this as a starting balance.
Eg In May from our invoices we had £500 CIS tax withheld and then we had £200 due to pay for CIS deducted from subcontractors invoices. Therefore we are £300 in credit (£500 we have had deducted - £200 owed for subcontractor tax = £300 credit).
How would we track this £300 credit in QB so that we know where a payment for CIS needs to be paid to HMRC if we are not in credit?
I’m thinking it would be some form of journal entry but don’t know where to start!
Does anyone know how to do this please and how we keep a track of CIS amounts we need to pay?
We started tracking all accounts from May but had a starting balance of £176 that has been deducted from invoices we had submitted in Apr so would want this as a starting balance.
Eg In May from our invoices we had £500 CIS tax withheld and then we had £200 due to pay for CIS deducted from subcontractors invoices. Therefore we are £300 in credit (£500 we have had deducted - £200 owed for subcontractor tax = £300 credit).
How would we track this £300 credit in QB so that we know where a payment for CIS needs to be paid to HMRC if we are not in credit?
I’m thinking it would be some form of journal entry but don’t know where to start!