Sorry having a mental blockage today
Going to enter on a sole traders tax return the CIS tax suffered in the year ended 5 April 2011
Is the figure to be entered
a) the CIS tax suffered on payments received in the year
or
b) the CIS suffered on "sales" made in the year (ie to include debtors?)
apologise if this seems simple, can't get my head from it today
Many thanks
Replies (3)
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The former
The turnover figure in the accounts will obviously include gross CIS work (plus non CIS work) taking into account debtors.
Box 80 on the Self Employed pages of the Tax Return asks for "Deductions on payment and deduction statements from contractors"; i.e. tax on the payments received in the particular tax year.
EDIT: Nigelburge beat me to it - by 2 minutes (the swine!!)
Problem with time lag
I have a client who only worked Feb to March but didn't get paid (and CIS tax deducted) until April.
The tax bill is causing big problems.
I'm thinking of changing year end to extend to 30 April.
Any other suggestions please?