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How should CIS be posted in Sage?

How should CIS be posted in Sage?

Client posts Gross invoice value via sales daybook matching net payment received in due course.

But he puts CIS withheld into PAYE account 2210 as a sales credit?? Sales need to be shown gross (before CIS deducted) so how do I clear the PAYE postings??

I've just started acting and need to sort out his Sage - not my forte!


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08th Oct 2007 19:35

CIS Payments in Sage
Sage has a good help sheet on this on their Knowledgebase.

It makes a big difference to the process if your client uses Cash or Standard VAT Accounting so watch for that.

If you cannot access the help sheet let me know I have a copy I downloaded.

There are ways of importing a large number of adjusting lines to Sage that you can prepare on a spreadsheet to cut the time involved.

However I have found with Sage It may jsut be easier to start again.

Best regards


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08th Oct 2007 19:39

CIS on Sage

Just realised the trick!

Your client should be posting his Subbies invoices to the Purchase Ledger not the Sales ledger. Then the debits and credits are the right way round.
There is an extensive help sheet on this on the Sage website Knowledgebase.

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09th Oct 2007 08:39

Sorry janet!
Sorry i wasn't very clear - he was on invoice accounting - but I've now changed him to cash accounting.

He posts the gross to debit 1100, say £705, net £600 credit to 4000 and Vat £105 credit to 2200 - nothing difficult here!

Then the CIS £108 is credited to 1100 and debited to PAYE 2210. This makes debtors control and Vat correct, but I have a balance on my PAYE account - he is a sole trader with no PAYE liabilities, so his CIS deductions are shown on his SA.

Previous acct has not done a balance sheet - I want to prepare one but need to know what to do with the PAYE balance as it shouldn't be in his accounts as it's personal tax paid.

In the words of my daughter, I'm having "a moment" with this one!

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09th Oct 2007 09:55

Easy solution
As you say, the balance on 2210 is, in effect, and advance payment of personal tax which will be deducted from his tax liability when his personal Tax Return is done.
It can simply be treated as 'drawings', but i would leave it where it is for now (maybe change the name of the account) as it can be a useful reminder for when the Tax Return is being put together.

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09th Oct 2007 16:41

Thanks Andy - don't you hate it when you miss the b*** obvious!!!!

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11th Oct 2007 10:00

What I find odd is . .
. . how some people contributing (not just this thread) seem intent on making the obvious very very complicated! Their poor clients!

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10th Feb 2014 20:27


Hello. I have just joined an accounts firm. I have self funded AAT and passed all exams before finally getting an accounts job. I am finding certain aspects difficult in practice when compared to the textbook. I have read previous posts on CIS tax but it is still not clear to me. I was wondering if someone could explain its treatment in SAGE to me. I have received invoices with CIS and have posted the net and vat amount to either batch supplier/customer invoice respectively and the CIS element in batch credit. is this correct? Any help appreciated.

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