CIS Deductions

C_Constructions_1

Hi! In my invoices I need to create a tax code that is being deducted rather than added to the amount outstanding. Can you please guide me? Thank you!

sdconstruct

I also need this...

Rahim

Hi @C_Constructions_1 and @sdconstruct

Can you clarify whether these are effectively "negative taxes" added to a line item and then deducted from the pre-tax subtotal?

Is this typically for single items on an invoice or for total invoices?

Where are these tax codes documented and how are they updated? so we can take a look with our team here? Could you send a link so I can review an example?

ExpertP

Please add a function to allow 20% CIS to be deducted from the total of individual items not the overall total as CIS is not deducted from materials. It would seem a quick work around would be to add the possibility for us to create a new tax ourselves in the negative (it would essentially be minus 20% as opposed to plus 20%)

ZoeC

Hey @ExpertP , thank you for reaching out! I do fully understand that this is something that is required by your business and our Product Team is aware that this feature would be useful to a lot of our users. It is not on our immediate roadmap and I don't have a timeline on when a feature like this would exist, but we really do appreciate your suggestion and feedback. User feedback plays a huge role is rolled out next in Wave, so please keep the suggestions coming.

MerlinAccounts_UK

@C_Constructions_1 @sdconstruct @ExpertP

The CIS deduction isn't an actual deduction from your invoice value but rather a deduction from the amount being paid to you in settlement of your invoice. You should not therefore be trying to tweak your invoices to show this. What you need to doo is match the payment received against your invoice, leaving a 20% balance outstanding. Then, using (for example) the cash account, enter the CIS tax first as if it is a payment for your invoice, and then entering a payment in your cash account and allocate that to your Balance Sheet under perhaps Current Assets with a new heading called CIS deductions. If you are offsetting against PAYE deductions/CIS deductions made by you from staff/sub-contractors you should put it under liabilities with your PAYE deductions so that it naturally offsets against these.

Jk11

You can create a new item (using main site not on mobile) name it as CIS then put you UTR number in description then in amount you can use - to deduct the amount of tax to be paid on invoice and it will take it off total amount .