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Netting off - CIS deductions account

When netting off - please can some tell me what the reference is? before tagging as a “Tax refund” then the “PAYE liability” - or is that the referent tax refund.


Could you elaborate abit more as to your question as it’s confusing. Are you referring to payments to sub contractors via cis or are you referring to your own cis deductions from payments received?

Sub contractors bill is as a business and we deduct there tax

Payment to sub contractors

I’ve tagged as a paye liability … it’s just wha you put in the reference column or do you put the name of the contractor to nett it off?

I have attached the link I am following from this site
And this one where the netting off is “tax refund”*


Ah I see what you mean.

Really sorry but I’ve never done it the way quickfile suggests.

oh I see what they are saying, the way they explain to do it is to basically reverse the cis deduction entry once you pay hmrc and I guess that’s why they are calling it a tax refund. Slightly misleading with the wording imo. But yes if you are following their steps then tag the payment to hmrc as a tax refund and it will reverse your original entry for the cis deduction.

You can put the contractor name if you wish.

Thank you so much for replying, You have explained it better and also the entry name I can put the contractor name.

I’m not an accountant and learning along the way with this digital system. It’s quite confusing a lot of tagging processes. :blush:. Thank you again

If you have an easier way please share or should I do this way?

I do it differently but I wouldn’t want to confuse you so I’d advise you follow how quickfile suggests

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