Partial domestic reverse charge

Support
1

Little headache here, hope someone out there can help.

I did send an invoice to a customer, partly labour, partly material. And they paid, deducting the CIS on the labour bit (which I believe is VAT deduction as domestic reverse charge), but paid the VAT on the material. Any idea how to book that as a payment pretty please? I seem to be only apply domestic reverse charge on the whole invoice or not at all, neither works for obvious reasons. I simple terms pease, I can fix a lot with a screwdriver, but accounts isn’t really my thing.

TIA

Tom

2

CIS and reverse charge VAT are two different things. If it were reverse charge VAT it would have been all the VAT on the whole invoice. A 20% deduction off just the labour portion sounds more like CIS income tax (which you offset against your PAYE payments if you’re ltd or your self assessment if you’re a sole trader) rather than anything to do with VAT. It’s slightly confusing that both of these use the same percentage rate but they are different.

There is a guide in the knowledge base for how best to account for this.