How do you I show CIS tax deductions on my invoices. The invoices I send to my contractors need to show the amount of CIS tax to deduct from the from the total. At the moment I just write in the notes the amount of CIS tax that needs to be deducted but this is not the correct way to do it . There have been many people on here asking the same question.
It would be very easy to set this up in this same way we have a box for reversve VAT. I have been using quickfile for a number of years now but If I cant find a way of doing this I will have no option but to switch to another software provider. Quite simply the people I invoice need this to be shown as a deduction from the final amount.
I think it’s time QF should up the game a bit, here is a
screenshot from another Q software, it shows normal vat on items not subject to reverse charge vat, items subject to revers charge and CIS deductions on the face of invoice (this is what missing in QF)
This is not what I mean domestic reverse charge is for VAT. Im talking about the CIS tax that needs to be deducted from a subcontractors wages. for example:
Labour £500 which is subject to CIS tax
Materials £100
Sub total : £600
VAT @20%:£140
CIS reverse VAT charge -£140
Total £600
Less CIS TAX to be deducted from Labour @20% =£100 (this is what is missing)
Balance due £500
Just out of interest, why does the contractor, who would have had to make the determination regarding how much cis to deduct, not know how much to deduct from your invoice if you don’t show it?
Every contractor I’ve known, keeps track of this, and very rarely do I see subbies having to break it down for them.
Further more, if cis is shown as a deduction on your invoice, then your not accounting for your own cis suffered since the invoice total will be Less cis and match the payment received.
Well said. I’m pretty sure they know what needs to be done. It seems they just fob people off and steer them to another help topic
Plus it will also enable QF to generate reports for
CIS Contractor Monthly Statement (CIS 300)
CIS Payment and Deduction Statement
CIS Suffered Summary
Being a contractor it makes life so easy
CIS tax is paid by the contractor on behalf of the subcontractor and so it is deducted from the invoice total and paid directly to hmrc. They then pay the outstanding balance to the subcontractor and the subcontractor keeps a record of the CIS tax paymments from the invoices in a seperate account
I understand how cis deductions work.
My point was based on my assumption your question related to you (the sub contractor) invoicing them the (contractor)
My point was, that if your invoice (the sub contractor) wants to show cis suffered, it must not be in the form of reducing your invoice total. Otherwise this will also reduce your reported turnover.
Which is incorrect.
Using an account to record cis suffered is correct, but only when the invoice total includes cis
The invoice total will not be altered just the balance due. If you do not show the CIS deducted then the amount due to be paid will be wrong as is not what you will recieve. You will recieve 20% less on the labour charge.
I understand all this. I just find it odd that you have to explain to the contractor how much cis to deduct when they should already know given they had to do the determination on your cis status in the first place.
Anyway, I’ll jump out the convo now as I’m not really adding anything useful.
Hi @dawson710
Please rest assured that it’s not our intention to point you elsewhere in the forum. We take all feedback on board.
We do support CIS DRC for VAT on invoices (which is what I linked to above), which is handled automatically in terms of VAT returns too.
We have recently integrated with BrightPay which may help with this. They have a CIS feature, including the filing to HMRC: CIS in BrightPay | Construction Industry Scheme | Sub-Contractor Payments
I, as a subcontractor, have never had to show how much tax the contractor should be deducting from my invoice. I simply send my invoice as I would to anyone else, they send me payment less the CIS deductions.
Admittedly I haven’t sent an invoice under CIS for a long time but I don’t think anything has changed regarding this. Yes you have to apply some degree of “workaround” in Quickfile but it’s one of the simplest and easiest workarounds there is. Would be nice if there was a CIS button in Quickfile but I think people misunderstand how CIS works or totally overthink it, or both.
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