I’ve had a look at most of the posts I found about how to deal with CIS deductions in accounting, but I still haven’t found what I’m looking for!
I hope you can give me some info.
So, I’m a self-employed plumber and at times I work as a sub-contractor for a company.
I actually don’t invoice them but they send me a weekly pay advice slip, which clearly shows the 20% deduction. The pay advice slip also includes reimbursement for materials and parking and also some deductions, whenever a customer pays cash directly to me.
This means that the payment I receive from them via BACS includes these reimbursements or deductions that are not actually income. How am I going to record these things properly and should I only take in consideration the “deductions” and “net profit” sections of the payslips when calculating the income? I thought this would be a problem as this would not match with the actual payments from them.
I hope it’s all clear enough!
Thanks for your help