Help with CIS!

Hi everyone!

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

CIS deductions have been covered in past, for other deduction which are not income, you can create another account and call it “Disbursement”. You can tag any expenses you pay on behalf of customer to this account and any money received to this a/c too for cancel out any cash outflow, this is on assumptions that no profit margin is involved in disbursement, at end of any job, balance should be zero for disbursement a/c once all is settled.

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thank you! this makes sense actually. No there is no profit as I buy materials, send the receipts to the company and they pay them back to me.