CIS Deductions

[redshovel]

I have been using MOA for almost a year with little difficulty thanks to this
forum but I required a couple of questions answered here please.
We have carried out some works for contractors over recent months under the
‘Construction Industry Scheme’. The contractor deducts 20% of of labour
charge we invoice and these monies are paid to HMRC. We as sub contractors
are members of this scheme and are fully registered with HM Revenue & Customs
etc.
However I have no idea how to account for this within MOA. Can anyone help?
Also several invoices to one particular contractor have been fully paid to
us and accounted for within MOA (marked paid and lodged to bank) However the
contractor has now realised he should have made the 20% deduction on our
previous 5 or 6 invoices and is now going to deduct the previous amounts for
our latest invoice.
Can anyone please guide me through how to account for all of this?
I am in total confusion ïŒ

 

[DL]

You have posted to what is primarily the US group, most folks here wont know
what you are talking about, the UK group is; microsoft.public.uk.moa
If we assume a sales invoice of £1000 (no vat involved)
You post £1000 to sales and credit PAYE & NI £200 (20%) which gives a net
figure due on the invoice of £800

So your invoice has a line for labour of £1000, and a second debit line for
CIS of £200 = balance due £800
(Maybe create a subaccount of PAYE & NI called CIS)
CIS is applicable to labour cost only, not materials