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VAT, CIS and Profit & Loss Accounts

Hi, I am new in this forum and I need some help from someone more experienced than me. I am using quickbooks to calculate P&L account for a company involved in the Construction industry. I have spent nights working on the general ledger and trying to match the debits and credits and something doesn't go well :(

I would appreciate your help!

The situation is as follows: The company has acted as a contractor and Sub-contractor at the same time. It has also been registered for the VAT flat rate scheme, adding VAT to the sales invoices and paying 9.5% every quarter.

Could you please advise me on the correct entries to match the two sides of the accounts as I am very confused now. 

I am unable to find the correct accounts for CIS liability and CIS tax suffered in QB either. It is one big mess for me.

Thank to all of you in advance.




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27th Jul 2012 08:01

Use bank accounts

We use VTT+, but the principles are the same.

Set up 2 new bank accounts, CIS suffered & CIS deducted. Use these accounts to record the CIS receipts & payments on the sales & subbie invoices. On the 5th of each month, move the balances across to PAYE/NI creditors.

EDIT: this assumes the business is incorporated. If not, move 'CIS suffered' balances to drawings.

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27th Jul 2012 08:07


There are lots of threads on here explaining different methods of dealing with the FRS, but the easiest method is to use gross invoice values, and offset the quarterly VAT against sales, so you DR sales, and CR Net VAT due. (we create a new account in the Sales category for this too).

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