How do I record an expense from a CIS subcontractor that is VAT registered when i am an unregistered contractor. The deduction needs to be without VAT

Let me guide you in the right direction on how to record the expense, ravenpropertyhul.

We first have to add your subcontractor to QuickBooks Online (QBO) and enter the CIS rate that the HMRC has provided, and then create the transaction. 

Before we continue, allow me to give you some information about how QuickBooks handles CIS transactions. When you create the entry, the online program will use the rate (entered on the subcontractor profile) to calculate the CIS to deduct. You can also add materials if they're part of it.

Once you're ready, proceed with the steps below to set up the subcontractor. Here's how:

1. Go to Expenses on the left panel and choose Suppliers.
2. Tap the New supplier menu on the left panel to open the Supplier window.
3. Head to the Additional info section and tick the Is subcontractor box.
4. Enter their UTR (Unique Taxpayer Reference) number and NI (National Insurance) number.
5. In the Verification number section, type the number provided by the HMRC (They will tell you all the information you need when you verify your subcontractor, including their CIS rate).
6. Click the Save button.

The subcontractor will now appear in the supplier list. Next, let's enter the expense. For detailed instructions, check out this article: How to create CIS transactions in QuickBooks Online. Go directly to the How to record paying a subcontractor section.

This reference also includes in-depth information about the Constructions Industry Scheme (CIS) and how to use the feature in QuickBooks Online: CIS guide.

I want to make sure you have the resources you need to manage all of your accounting tasks in QBO efficiently. Our self-help articles cover a variety of topics such as payroll, taxes, and customer and supplier transactions, to name a few. Simply select the one that best fits your concern. 

Reach out to me again if you have other product concerns or additional CIS-related questions. I'll be glad to answer them for you. Enjoy your weekend.