Morning All, so it appears HMRC have changed CIS Paye account payments. Previously we had a seperate “cis” account on qf where cis paye monies were transferred into this account and our subcontractors paye elements were paid from the same together with external subcontractors vat reversal invoices. HMRC appear to have done away with the seperate payment and you now pay paye and cis paye as one payment so do i tag this payment as paye and then mark the cis subcontractors invoices as paid in full?
You still need the holding account so the invoices can be marked as “paid in full” even though you’ve only actually paid part of the value to the subcontractor.
The difference is that rather than leaving the tax portion to accumulate as an overdrawn balance on the holding account and settling it at month end, you could manually create a “money in” transaction on the holding account for the withheld amount and tag it as a PAYE tax refund from HMRC. This will have the effect of removing the CIS liability from the holding bank account and instead adding it to the credit balance on your PAYE liability nominal, so when you make your PAYE payment to HMRC you can include the CIS amount in that too.
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