A few months ago I was googling for ways to handle CIS in Quickfile and as well as the workarounds on here I found one actually written by Sage on their site explaining how to do it with Sage but without their CIS module. I cant find that article now but thought the method might be useful for people on here. I’ve been using it with no problems so far, it’s easy and doesn’t seem to break anything else. The only caveat is that your QF “bank statement” will be wrong for the duration of one transaction.
- For a Subcontractor, that is YOU, the person using QF is the subcontractor and you’ve issued an invoice to a contractor.
Enter your sales invoice (category: General Sales) for the FULL amount into Quickfile, do NOT make any deductions for CIS tax.
Create a new nominal code in either the equity or assets range (I used equity 3xxx) and name it “CIS to Claim”. This is a better name than than “CIS deductions” as it describes this account as CIS tax that you have already paid and can claim back on your tax return.
When you get paid by the contractor, you need to ignore that low payment and “pretend” the payment is for the full amount, So if you use bank tagging, delete the “money in” bank entry and replace it with the following 2 manual entries:
A:
type: Money in
amount: Full amount of sales invoice
description: Contractor XYZ gross payment
(bank statement now wrong)
B:
type: Money out
amount: Amount of CIS tax
description: Contractor XYZ CIS transfer
(bank statement now correct)
Now just tag these 2 transactions as usual, the “money in” as “payment from customer” against your sales invoice and the “money out” as “something else not on the list” against your new “CIS to Claim” nominal code. At the period end this nominal will have your total CIS paid to offset against your tax payment.
- For a Contractor, that is YOU, the person using QF is the Contractor and you’ve received an invoice from a Subcontractor.
Enter a new purchase (not paid) for the FULL amount into Quickfile when you receive the invoice (category: Subcontractors), do NOT make any deductions for CIS tax.
Create a new nominal code in the liabilities range and name it “CIS to Pay”. This is a better name than than “CIS deductions” as it describes this account as CIS tax that you owe (liability) to HMRC on your next monthly return.
When you actually pay the subcontractor (I mean the cheque/transfer not in QF), you pay the correct amount, ie the invoice value minus any CIS tax deductible.
When that (low) payment comes through on you bank tagging screen, delete it and replace it with the following 2 manual entries:
A:
type: Money out
amount: Full amount of invoice from subcontractor
description: Subcontractor XYZ gross payment
(bank statement now wrong)
B:
type: Money in
amount: Amount of CIS tax
description: Subcontractor XYZ CIS transfer
(bank statement now correct)
Now just tag these 2 transactions as usual, the “money out” as “payment to a supplier” against your purchase invoice and the “money in” as “something else not on the list” against your new “CIS to Pay” nominal code. When you do the monthly CIS return all the details are in the “CIS to Pay” nominal and when you pay HMRC just do a bank payment against that code to reset it to zero.
Regards