how do i mark a transaction as CIS deducted? (2024)

‎March 19, 201909:20 PM

Ive been using quickbooks for a wile now and have recently done some work for another contractor who has deducted CIS from his payment.

how do I log this?

• QuickBooks Self-Employed

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MirriamM

Thanks for reaching out to us for assistance, pud,

Let me get the help you need in recording your transactions.

If you are using QuickBooks Self-Employed, you can mark this transaction as income. To keep your records in order, I'd recommend reaching out to your Accountant or Tax Pro Advisor this is to verify what specific category to use.

If you are using QuickBooks Online, creating a CIS transaction is the same as creating a normal transaction. With CIS turned on, we'll calculate everything for you.

To know more on how CIS works in QuickBooks Online, here's a great resource that you can check: CIS in QuickBooks.

If there's anything else you need help with, please let me know. I'm always here to help. Have a great day!

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surely their is a easy way of adding a transaction as CIS deducted

is it not a very normal thing for a self employed contractor to be paid this way

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Appreciate your response, pud,

QuickBooks Self-Employed is compliant based on the category available in SA103F provided by HMRC and to make sure it won’t mess up on your tax reports. It would be best to seek the advice of your accountant or tax advisor.

For additional reference, you can check out this article: About SA103F categories.

Feel free to reach back out if you have any other concerns about QuickBooks Self-Employed, I'd be happy to assist.

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Good evening Quickbooks team,

We also find ourselves in a similar position. Having just raised an invoice to a builder who also deducts CIS, the amount on the invoice does not now match the amount paid into our bank (80pc has arrived)

How do you or can you retrospectively make this CIS deduction?

Thanks

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Thanks for joining this thread, @Calvds.

I'll share some insights about tracking and matching your CIS transactions.

If you're using Quickbooks Self-Employed, there isn't a way to markyour transactions as CIS deducted. As what my peer mentioned above, the program is compliant on the HMRC's available SA103F categories. This ensures your estimated taxes are correct when preparing them.

If you're using the online version, you can track your CIS deductions by turning on the CIS feature in the program. If you haven't turned it on, here are the steps:

1. Go to the Gear icon at the upper right.
2. Select Account and Settings.
3. Goto Advanced from the left menu.
4. On the Construction Industry Scheme (CIS) section, click the Edit (pencil) icon.
5. Check the Enable CIS box.
6. Enter the necessary info.
7. Click Save and Done.

Since the invoice amount doesn't matchto the amount paid into your bank, you'll need to manually open the invoice and select the CIS rate. Once done, it willcalculate and apply the CIS to this transaction.

I'm adding these helpful articles to learn more on how CIS feature works in the program:

• CIS in QuickBooks
• Already using CIS in QuickBooks?

The steps and resources above will get the information you need for today,@Calvds.

Don't hesitate to visit us again if if you have any other concerns. Have a great day.

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Hi, I wanted to add to this. I am self employed and I do a huge amount of work for a construction firm that may me with CIS deducted from my invoice.

The CIS payments/deductions that are made on my behalf by the firm do not pass through my account.

On my tax return these payments are supposed to be put into a completely separate box on the tax return form. Surely there should be a way to track how much tax I have paid in this way so that I am able to fill in the tax return correctly.

I have spoken to my accountant about this at length and they agree. At the moment they have to scan through all of my CIS statements, remove the payments from my quickbooks and manually calculate my actual turnover and income from there because the displayed turnover and estimated tax are both wrong on my quickbooks due to this issue.

Can we suggest that quickbooks should add a feature so that we can enter a payment and stat that CIS has been deducted at a rate of '£xxxx.xx' and put the invoice total to the correct amount? That way all of the dashboard values will be correct and my accountants have said they wouldn't need to charge me as much due to a reduction in the work that have to do.

Hello Newphase

We can certainly pass on your feedback to our Self Employed product developers as currently the package is not compatible with CIS at the moment it is only a feature of our small business products(Simple Start,Essentials,Plus)

Emma

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Hi, I currently receive payment with CIS deducted, this is only though 1 invoice per month. If I turn on CIS payments can I link this to that only 1 invoice or does it get automatically added to all my invoices?

I also pay a subcontrator weekly who takes care of all his own taxes so I would not want this to be added to that payment either.

So does the CIS automatically add or does it have to be manually done?

thanks

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I had this same question a while ago. I've managed to figure things out now so I hope this helps..

Once cis is switched on you can set up a customer and or supplier as a cis contractor. You can alse select their usual cis rate.. 30%,20% or gross.. And there is also an option to select cis materials reimbursed so that your materials are not counted in the tax section.

So for your payment coming in, you set up the customer as cis 20% if you are registered at 20%. Then when you create the invoice, in the item category you select option, cis income at 20% as labour and then cis materials for your parts. Enter the total values for the invoice. Quickbooks will then calculate the cis value and send your invoice as usual. Once paid you match the transaction to the invoice and it will record the cis payment as cis suffered on your balance sheet.

This works in a similar way to the contractor you pay, just select the option when you enter the payment as cis gross or 20% etc depending on how they are set up.

Non cis stuff just stays the same as always..

I hope this helps, sounds a bit complex but it's actually quite easy when you dig into it

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Hello John M, thanks for posting on the Community page, which account do you have with us is it one of our online small business accounts or our self-employed account?

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Hi, I've been using quickbooks with CIS for years so maybe I can assist a bit here. Firstly, if you are using quickbooks self employed version I don't think that supports CIS or at least it didn't when I used it. I use the quickbooks online main version which does.

Once you have activated CIS (see my earlier post above) you have a few options to use depending on what you have chosen when you registered with CIS. I personally registered for the 20% deduction. So for CIS main contractors I split labour and materials and mark labour as cis 20% and materials as CIS materials. I do this for both estimates and invoices, if you are VAT registered then you can also choose reverse charge CIS.

If you set your CIS up to be paid Gross then that's the option you need to use as it then won't record any CIS tax payments.

Note, if you're not sure which you chose, you should be able to log in and find out / change it through the CIS scheme. Or if you check with the main contractor paying you, when they search for you on the CIS system using your UTR number the system will tell them if they should deduct 20, 30 or pay gross. That will also tell you what you are registered for and subsequently which option to use for your estimates and invoices.

I also scan the remittance files and add them to the transactions for the payments I receive just to make sure I've got all the evidence of the tax payments saved.

Sorry its a bit long winded, hope it helps.

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