CIS - Journal the balance to PAYE or other account

Hi guys, I’ve read through all the other topics on CIS, I have set up a new sales nominal code called ‘CIS Deductions’ 4010

Just for reference I’m a sole trader, not LTD, nor VAT registered

I have raised several invoices with total CIS deductions of £1299.75

I’ve set up a new journal

Is this correct? As I see it this balances the CIS account for the period to 0 and raises the PAYE account by £1299.75.

Now the question I have is should I be crediting the PAYE 2210 account if I’m a sole trader?

I was also expecting to see a change on the P&L Report, but I don’t see any change… Do we only see the figures on the chart of nominal accounts?

I’m also wondering now if I’ve got my credits & debits the correct way round…

As always, thanks for your support :smiley:


If you are a sole trader or partner in a firm. HMRC treat the CIS deductions from your invoices as up-front payments towards the tax and Class 4 National Insurance contributions (NICs) due from your business. You cannot off set against PAYE, do you employee people, are you running PAYE scheme?
you will book your sales like this e.g made 120 gross

Dr Debtors 120
Cr Sales 120
When you get net money in bank entry will be
Dr bank 100
Dr CIS a/c 20 (balance sheet a/c, other debtors)
Cr Debtors 120

this CIS a/c will be net off against total income tax liability

I don’t run a PAYE scheme, The CIS workaround post said journal the CIS payments to the PAYE account, hence why I asked the question really, as I don’t run PAYE where should I be linking this payment to in the journal?

I understand the principle of CIS, I just don’t follow how / where I’m supposed to journal the CIS payments at the end of the year.


You need to create new account " CIS Deducted" , it will be asset a/c parent category will be debtors

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