Should Non VAT registered CIS subcontractors be included in Box 7 of the VAT return?

Question

When setting up a CIS subcontractor in Sage Business Cloud, if the box is ticked to say they are not VAT registered the supply does not show in Box 7 of the VAT return. Is this correct? I cannot find a definitive answer from HMRC in regard to CIS supplies saying they are outside of scope and should not be included? Can anybody provide me with clarification if they should or should not be in Box 7?

AndrewS. · Accepted Answer

Hi, 
 Thank you for using the Community Hub. 
 I think we would need to investigate further to confirm how your supplier and invoicing are set up to ensure correct reporting to VAT 
 The next step would to be contact us via &ndash; 
 Contact links 
 If this helps, please let me know by clicking Verify Answer. 
 Regards 
 Andrew 
 SAGE UKI

Stuart A · Answer

Hi Wendy, Thanks for using Community Hub. 
 To ensure CIS transactions are reported correctly, you'll first need to enable and set up CIS within Sage Accounting. This allows you to create CIS customers and suppliers, as well as use the correct categories and nominal codes for CIS related transactions. Once configured, CIS transactions will be allocated to the appropriate categories and included in the correct sections of your VAT return.

For step-by-step guidance, please refer to the guide below.

Set up CIS for you business

Included in the guide below are articles covering: 
 
 Setting up a CIS Contractor 
 Setting up a CIS Subcontractor 
 Configuring the relevant ledger accounts and nominal codes 
 Submitting your monthly CIS return 
 
 Following these guides will help ensure your CIS setup is configured correctly and that transactions are reported accurately.

If this helps, please let me know by clicking Verify Answer . 
 Regards, Stuart Sage UKI

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Should Non VAT registered CIS subcontractors be included in Box 7 of the VAT return?

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