I have received an invoice from Supplier. I have to deduct 20% from the labour element of the invoice and pay the net balance. Reverse charge has been applied paid by Supplier. So I have followed Quickfile instruction for creating Bank account for CIS entered the invoice and the amount paid leaving me a figure in the red for -485. So I understand taging the payment to this bank account fom the Current account when it is paid to clear the -485. My question is how do I create the payment to HMRC to send them the money? Who do you make a bacs payment to? Hope this makes sense? I belive we owe HMRC £485 but dont know how to pay them. Thank you
I’m afraid it isn’t as simple as that.
First you need to register for cis as a contractor.
Then you need a paye software like money manager to report the cis deduction.
Only then can you pay the cis to hmrc.
Or use it to reduce your paye tax and ni. Whichever.
There’s no need to use expensive payroll software, especially for one subcontractor. @EasternDemolition can set up an account with HMRC (Government Gateway) and submit the return via their portal, which is free. All the details of how to set it up, submit returns and make payments are here : What you must do as a Construction Industry Scheme (CIS) contractor - GOV.UK
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