Solution Properties
Solution ID:
222001000101299
Last Modified Date:
Wed Aug 12 07:45:39 UTC 2026
Taxonomy Path:
Case category//How do I...//governmental/legislative compliance
Author:
[email protected]
Record CIS payment to HMRC
Description

Each month, pay HMRC the CIS tax you deduct from your subcontractors. The payment deadline is the 22nd of the month, or by the 19th if you're paying by post.

When you pay a subcontractor, we record the amount owed to HMRC on your CIS Tax Liability Realised (2502) ledger account.

Once you pay HMRC, record the bank payment against the CIS Tax Liability Ledger account. This brings your reports accurate and your bank balance up to date.

Cause
Resolution

Record the payment

  1. From Banking, open the required bank account.
  2. Choose New Entry, then Purchase / Payment.
  3. Choose Other Payment, then enter the date for the payment.
  4. Enter the total amount paid to HMRC for the period.
  5. For the Ledger Account, choose CIS Tax Liability Realised.
  6. Choose No VAT for the VAT rate.
  7. Select Save.
▼ See a breakdown of the ledger movements

You pay the subcontractor and withhold the CIS deduction of £30.

Record CIS deduction in the CIS Tax Liability Realised ledger, resulting in a £30 balance.

Without reverse charge VAT
Ledger Account Debit Credit
Trade Creditors 90  
CIS Withheld 30  
Bank account   90
CIS Tax Realised   30
With reverse charge VAT
Ledger Account Debit Credit
Trade Creditors 70  
CIS Withheld 30  
CIS Labour Expense   70
CIS Tax Realised   30

 

You pay the withheld amount to HMRC and record it against the CIS Tax Realised ledger account. The balance of the account is now 0.

Ledger Account Debit Credit
Bank account   30
CIS Tax Realised 30  

 

 

Steps to duplicate
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