Record CIS a contractor deducts

Tax a contractor holds back, recorded against the invoice it pays.

1. Open Payments and press Record a payment.
2. Pick the invoice. Under How it arrived choose Tax withheld at source.
3. Pick the Rate the contractor deducted at.
4. Fill in Materials on their statement. CIS is taken from labour only.
5. Press Record it. It settles that part of the invoice. No money arrives.

• Tax withheld at source shows on an invoice to a Principal contractor, unless the job’s kind of work has Construction work unticked.
• Every deduction is listed under Withheld at source on Payments.