CIS

Question

My client has a customer who is deducting CIS from the invoice we sent to him. It is a new build so not subject to VAT. I have spoken to Sage helpline and they advised me that Sage only handles CIS VAT deductions. I have looked at the Sage help information and that does not seem to be the case to me, as you can have reverse VAT or no VAT, so CIS is deducted from labour and materials as income tax or corporation tax in advance. The accountant advised me that the CIS deducted is recovered via the PAYE. Very unsure what to do regarding this client or the postings and not sure that the advice that Sage helpline gave me is correct. Any advice would be appreciated. Many thanks.

Andy Rickeard · Accepted Answer

Hi John, Thanks for using Community Hub. Could I just double check which Sage product you're using? I want to make sure your post is in the best forum to get a reply. Regards, Andy Sage UKI

JohnH · Answer

I'm using the Sage Business Cloud, Sage For Accountants. Hope that helps.

Claire Peace · Answer

Hi John, 
 Thanks for using Community Hub. 
 When it comes to CIS deductions such as for Labour or Materials, these can be submitted via a monthly return that can be created within the software. These do not have to include VAT, as you've mentioned, with being able to have reverse charge or no VAT. 
 Non inclusion of VAT won't impact the deduction rate, as that is handled separately. 
 Regarding CIS that is recovered via PAYE, that will be CIS Suffered which can be recovered when submitting an Employer Payment Summary (EPS) via a Payroll software such as Sage Business Cloud Payroll. 
 If this has has answered your question, please click Verify Answer. 
 Regards, 
 Claire Peace 
 Sage UKI

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