How to account for CIS payments withheld at source

I need to find out how to enter CIS payments in a day book & SLC account

Didn't find your answer?

Good Afternoon everyone 

I have recently started an AAT course in bookeeping, however I have been doing my husbands accounts on Sage for a couple of years now.

I wonder if anyone can tell me how I would enter his with held CIS payments in regards to day books & SLC. I know on sage, I would just leave the payments as a CR balance on the customers account, but I was wondering if I should be putting it down as an expence on my day book or just leaving it as a cr balance on the customers account in my sales ledger and not even bother recording it in DB and/or SLC.

Sorry to be a pain if this has already been asked else where, I have looked though some of the questions that are similar to this one but I can't seem to find the answer I needed, and as I am a student, with regards to manual bookeeping, any help would be greatfully recieved.

 

 

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By Cloudcounter
10th Jul 2018 14:34

It depends on if your husband is a sole trader or runs a company.

Issue a credit note to your supplier, with no VAT, and debit the amount to the PAYE control account if it's a company or to personal drawings for a sole trader.

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Replying to Cloudcounter:
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By Lorraine Newport
10th Jul 2018 14:57

He is a sole trader, however he is the sub contractor and is having CIS payments taken by the contractor.
eg
Gross total of invoice is £600
Customer/main contractor keeps £120 and pays my husbands CIS to HMRC
We recieve £480

He isn't VAT registered anyway so that isn't an issue.

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