We are a small company whereby we have one on maternity pay and I use sub-contractors. When it comes to the month end the maternity payment I can reclaim is greater than the CIS tax I have to pay HMRC. How do I reconcile this in Quick File where I have created a bank account called CIS Control Account for CIS tax to be stored until it is due.
So your CIS account has an overdrawn balance of X for tax you owe, HMRC owe you Y (>X) for maternity pay, and what you actually received in your current account was Y-X money in?
If that’s right then I’d tag the money in to the current account as a transfer from the CIS account, which leaves the CIS account balance as £Y overdrawn. Then manually add a “money in” transaction to the CIS account for Y and tag that as you would normally tag a maternity repayment in your current account.