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Dealing with CIS invoices

Dealing with CIS invoices

Do any accounting packages allow you to enter CIS sales invoices and input CIS purchase invoices properly?

I'm particularly thinking about the following software:


QuickBooks Online

VT Transaction+


Clear Books

I usually have to fudge it!


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26th Sep 2013 10:55

What are you finding difficult?

They are just the same as any invoice aren't they? It's the payment that's different.

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26th Sep 2013 11:07

The deduction

It's the deduction.

I remember when I had to use Sage and I had to input one invoice and one credit note for each invoice.

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26th Sep 2013 12:04

We do it different

We set up temporary bank accounts for CIS suffered, and CIS deducted.

We enter the invoice, and then immediately enter the CIS tax as a payment against the invoice to the CIS bank account. The outstanding amount on the invoice is the amount to be paid from the customer/to the supplier. When CIS statements prepared/received, we transfer the tax from the CIS bank account to Creditors PAYE/NI (assuming ltd co).

It works for us ;)

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26th Sep 2013 12:10

Timing issues

ShirleyM you would be better to post the cis element to the cis account on the same date as the payment comes in as the invoice date isn't relevant to the monthly returns. 

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26th Sep 2013 12:15

Quickb Solution

I set up CIS Deductions as an other current liability account then when inputting the CIS invoices entered the bill amount as the amount due to pay - listed out the full cost of the labour & materials as you'd normally do then enter a final line on the invoice using the CIS deductions and the balancing figure will automatically enter as a negative - all your accounts are now correct

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26th Sep 2013 12:34


That is why we put it in a temporary bank account & only transfer it to PAYE/NI when the payment/statement is received or made.

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26th Sep 2013 12:54

Thinking back

I think how I did it was to set up an invoice without any deduction and set up a credit note. When the payment is made it is allocated to the invoice and the credit note.

I think the problem I was having was trying to get clients to prepare invoices in the accounting software. I suppose it can be done if you can post negatives.

Otherwise, you just have to prepare CIS invoices using Word or Excel and then post them to the accounting software.

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26th Sep 2013 13:02

how about using the cash account (sage) dr the whole invoice to the cash account, then do a bank payment for the CIS amount to the CIS nominal (T9), and JNL or transfer the net to the bank from the cash account? If you number all the transactions with the invoice number it will be easy to keep track! Wouldn't this work?

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26th Sep 2013 13:11

Cash account?

That sounds really confusing. I prefer keeping things as near to reality as possible. If you use the same number for the sales invoice and sales credit note (or a CN after the number) I think you are pretty close to reality.

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26th Sep 2013 13:38

Would your credit note be coded to the CIS nominal then?

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26th Sep 2013 15:12

Credit note

Yes, which is then cleared by deducting from any other PAYE & NIC payments.

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