Hi
When starting out on quick file I entered an invoice wrongly for a sub contractor.
The sub Contractor is NOT vat registered - entered on quickfile as the net amount that was paid to him and not the gross total. I am now confident with this system for my other subs entries and followed the steps on how to enter onto the CIS Account etc. - Its just this particular entry i have a query with.
I entered the category sub contractor when entering the purchase invoice but didn’t have the CIS bank account running until I was reading up how to do this.
Anyone out there that can help please and my figures, they will be wrong and don’t know how to account for this error on year end. THANKS
No lock on the year end. Its that VAT period that is locked and won’t let me detag the invoice in question (ie entered wrongly, before I set up a CIS bank account), and not sure if I can correct the invoice as I was unsure when starting out how to enter our sub contractors invoices. (There is no VAT on these invoices and the category entered was - sub contractors).
I’m showing you a screen shot of what I’ve done
So sub contractors invoice in total was for 600.00. With an amount of 120.00
Tax which leaves 480.00 to pay.
Tax has been paid to HMRC.
In that case, as Paul_Courtier says the easiest workaround at this point would be to create a separate purchase for the “missing” £120 (to the same “sub-contractors” category), which could be dated the same date as the original QF00147, and mark it as paid from the CIS holding account. This should balance out the £120 balance sitting in your holding account from the “tax refund”.
So you now have your CIS account showing £120 overdrawn (which is credit in nominal account terms1) and your 2210 PAYE nominal showing £120 debit. So to net it off, manually create a £120 money in transaction on the CIS account and tag that as a PAYE tax “refund” (which in nominal terms is £120 debit to the CIS account nominal and £120 credit to 2210).
1 yes, this is backwards compared to what you’re used to seeing on your bank statements. Money in is debit and money out is credit on the nominal account view of a bank account - it feels weird but the thing is that the statements a bank sends to you show their view of you, whereas your own books show your view of the bank.
Thanks you so much - Ive followed your step by step guide and completed this. Got another one if you want to tackle for me-last one…(I now know how to do these from the beginning to end).
Sub contractor invoice full amount eg 2325.00 put to a purchase invoice sub contractor. Then I added a description of
as you can see from screen shot what I’ve done - you may laugh what ive done! but all new system in tagging and entering on quickfile and use to old school pen and cash book.
Same principle, create an extra purchase dated the same as QF00165 for the £465, paid from the CIS account, then net off the £465 to 2210 as a “PAYE refund”.
