- How do I handle deductions made from my payments by my clients?
- I can only see payrolls and employees. How do I set up subcontractors?
- What tax code should I give to subcontractors?
- Where do I enter the CIS details of the subcontractor?
- Can I get a pay statement that doesn't include spaces for PAYE and NI details?
- How do I actually enter how much to pay my subcontractors?
- Where do I get my CIS300 Monthly Return from in the software?
- Can I submit a CIS300 "Nil Return"?
- Some of my subcontractors are not individuals. How do I enter them as companies?
How do I handle deductions made from my payments by my clients?
- Set up another payroll in the same company.
- Do NOT make this payroll a subcontractor payroll
- Create a dummy employee in this payroll.
- Give them the CIS deduction rate that is applied by the client
- Put through payments from the client gross of CIS deduction just like CIS subcontractor payments (using the "Payment" code on the current period tab). You should see the CIS deductions appearing just as you do for subcontractors.
- Process the payroll as normal (ie advance it through the periods as normal). Never give this employee any taxable pay or NI earnings, so they won't appear on the P14s list.
- You should see the client CIS deduction come through on P32, P11, and P35 reports.
- So P32 and P35 will automatically be correct. You don't adjust the CIS300 submission to reflect your own deductions. That isn't its purpose.
Top
I can only see payrolls and employees. How do I set up subcontractors?
Create a payroll just for subcontractors. Tick the box on the payroll form that states that the payroll contains subcontractors. Then employees added to that payroll will be subcontractors in reality.
Top
What tax code should I give to subcontractors?
You have to give them a tax code, but it doesn't matter what it is. "NT" (which means no tax) is probably a good choice.
Leave their NI Table at "A", or alter it to "X".
Their tax and NI codes don't matter because you won't be giving them any taxable pay or NI earnings, so they'll never pay tax or NI.
Top
Where do I enter the CIS details of the subcontractor?
The CIS deduction rate is on the first "Employee" tab.
Once you've filled in the first "Employee" tab with basic details of their name you can enter their CIS information on the HR tab. It is all in a box at the bottom of that tab. First you select the type of subcontractor (eg sole trader or company) and then you fill in appropriate details such as the UTR and verification number.
Top
Can I get a pay statement that doesn't include spaces for PAYE and NI details?
Yes, you can get a pay statement that is suitable for subcontractors. You need a premium licence to select pay statement style. The style of pay statements is controlled on the Reporting tab of the payroll form. Pick the style called CIS.
Top
How do I actually enter how much to pay my subcontractors?
Answer: Enter the payments on the Week/Month n tab of the subcontractor form. Use code CISPAY (payments) or CISMAT (materials). CISPAY entries will have an automatic CIS deduction made according to the deduction rate of the contractor.
If you want to make more than one payment on a pay statement then you'll need to set up extra codes in the Payments/Deductions folder. Copy the existing codes CISPAY and CISMAT for this purpose. Some of the important checkboxes for CIS are on the advanced tab of the payment code setup form.
Top
Where do I get my CIS300 Monthly Return from in the software?
The CIS300 report is on the company form. You need to request the appropriate year and period, and the software will automatically put up a form that allows you to change the report year and period every time you request a report.
Figures will not appear on the CIS300 report until you have completed the period that it applies to in the payroll that the subcontractors are in. You need to press the button that moves on to the next period on the payroll. Then the CIS300 will be updated.
Top
Can I submit a CIS300 "Nil Return"?
Yes, just select the internet CIS300 request on the company form, and tick the "Nil Return" box.
Remember, you need both a CIS licence and a Premium licence for the software to submit internet CIS returns of any kind.
Top
Some of my subcontractors are not individuals. How do I enter them as companies?
You still enter them in the same place, but the name boxes on the first tab should be the name of the company. Enter the first word in the company's name as the surname, and the rest of the words in the company's name as the forenames. That way the browser, reports, and pay statements will look sensible. Leave the title and gender blank, and enter a birthdate of 1/1/2000.
Apart from that enter them just like individual subcontractors with a tax code of NT. And enter their CIS details on the HR tab.
Top
- How do I handle deductions made from my payments by my clients?
- I can only see payrolls and employees. How do I set up subcontractors?
- What tax code should I give to subcontractors?
- Where do I enter the CIS details of the subcontractor?
- Can I get a pay statement that doesn't include spaces for PAYE and NI details?
- How do I actually enter how much to pay my subcontractors?
- Where do I get my CIS300 Monthly Return from in the software?
- Can I submit a CIS300 "Nil Return"?
- Some of my subcontractors are not individuals. How do I enter them as companies?
How do I handle deductions made from my payments by my clients?
- Set up another payroll in the same company.
- Do NOT make this payroll a subcontractor payroll
- Create a dummy employee in this payroll.
- Give them the CIS deduction rate that is applied by the client
- Put through payments from the client gross of CIS deduction just like CIS subcontractor payments (using the "Payment" code on the current period tab). You should see the CIS deductions appearing just as you do for subcontractors.
- Process the payroll as normal (ie advance it through the periods as normal). Never give this employee any taxable pay or NI earnings, so they won't appear on the P14s list.
- You should see the client CIS deduction come through on P32, P11, and P35 reports.
- So P32 and P35 will automatically be correct. You don't adjust the CIS300 submission to reflect your own deductions. That isn't its purpose.
Top
I can only see payrolls and employees. How do I set up subcontractors?
Create a payroll just for subcontractors. Tick the box on the payroll form that states that the payroll contains subcontractors. Then employees added to that payroll will be subcontractors in reality.
Top
What tax code should I give to subcontractors?
You have to give them a tax code, but it doesn't matter what it is. "NT" (which means no tax) is probably a good choice.
Leave their NI Table at "A", or alter it to "X".
Their tax and NI codes don't matter because you won't be giving them any taxable pay or NI earnings, so they'll never pay tax or NI.
Top
Where do I enter the CIS details of the subcontractor?
The CIS deduction rate is on the first "Employee" tab.
Once you've filled in the first "Employee" tab with basic details of their name you can enter their CIS information on the HR tab. It is all in a box at the bottom of that tab. First you select the type of subcontractor (eg sole trader or company) and then you fill in appropriate details such as the UTR and verification number.
Top
Can I get a pay statement that doesn't include spaces for PAYE and NI details?
Yes, you can get a pay statement that is suitable for subcontractors. You need a premium licence to select pay statement style. The style of pay statements is controlled on the Reporting tab of the payroll form. Pick the style called CIS.
Top
How do I actually enter how much to pay my subcontractors?
Answer: Enter the payments on the Week/Month n tab of the subcontractor form. Use code CISPAY (payments) or CISMAT (materials). CISPAY entries will have an automatic CIS deduction made according to the deduction rate of the contractor.
If you want to make more than one payment on a pay statement then you'll need to set up extra codes in the Payments/Deductions folder. Copy the existing codes CISPAY and CISMAT for this purpose. Some of the important checkboxes for CIS are on the advanced tab of the payment code setup form.
Top
Where do I get my CIS300 Monthly Return from in the software?
The CIS300 report is on the company form. You need to request the appropriate year and period, and the software will automatically put up a form that allows you to change the report year and period every time you request a report.
Figures will not appear on the CIS300 report until you have completed the period that it applies to in the payroll that the subcontractors are in. You need to press the button that moves on to the next period on the payroll. Then the CIS300 will be updated.
Top
Can I submit a CIS300 "Nil Return"?
Yes, just select the internet CIS300 request on the company form, and tick the "Nil Return" box.
Remember, you need both a CIS licence and a Premium licence for the software to submit internet CIS returns of any kind.
Top
Some of my subcontractors are not individuals. How do I enter them as companies?
You still enter them in the same place, but the name boxes on the first tab should be the name of the company. Enter the first word in the company's name as the surname, and the rest of the words in the company's name as the forenames. That way the browser, reports, and pay statements will look sensible. Leave the title and gender blank, and enter a birthdate of 1/1/2000.
Apart from that enter them just like individual subcontractors with a tax code of NT. And enter their CIS details on the HR tab.
Top