Where CIS appears in your reports

Sage records CIS in different places depending on what you're looking at. Once you record a payment for a CIS invoice, two things happen. The deduction posts to your CIS Tax Asset account, and the gross invoice amount becomes part of your turnover.

Use this article to find the right report for the question you're trying to answer:

• Quick check across all invoices: Invoices list
• Total turnover for HMRC: Income tax summary
• Where the CIS sits as an asset: Balance Sheet
• Trading activity: Profit and Loss
• Transaction-level detail: Nominal Activity

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Invoices list

Go to Invoices. The CIS deducted column shows the withheld amount as a negative figure for paid CIS invoices. Non-CIS invoices show a dash. This is the quickest way to scan CIS amounts across your work.

Income tax summary

Go to Reports, then select Income tax summary. The Turnover figure here’s gross, which means it includes the CIS your contractor deducted. HMRC requires you to report gross income, not just the cash you received.

If your turnover looks higher than the money in your bank, this is why. The CIS your contractor paid to HMRC counts towards your tax bill at year end.

Balance sheet

Go to Reports, then select Balance sheet. CIS deducted on paid invoices appears in Current Assets as CIS Tax Asset Realised (account 1131).

This is an asset, not a payment to you, because it represents tax your contractor has already paid to HMRC on your behalf. It reduces your tax bill at year end.

Profit and loss

Go to Reports, then select Profit and loss. The full invoice value shows as Sales. CIS doesn’t come off your profit figure because it's a tax asset, not an expense.

Nominal activity

Go to Reports, then select Nominal activity. For each paid CIS invoice, the report shows:

• A debit to CIS Tax Asset Realised (account 1131)
• A credit to Sales - Products (account 4000)

Select an account row to see transaction-level detail, including the date and the debit or credit for each invoice.

Making Tax Digital (MTD) quarterly updates

Go to Income tax. Your CIS deductions don't reduce the quarterly turnover figure. They apply at Final Declaration, when HMRC calculates your full tax bill for the year. The CIS Tax Asset on your Balance Sheet tracks the credit you're building up.

Why is my CIS turnover showing incorrectly?

If your turnover doesn't include the full CIS invoice value:

1. Check that you've recorded a payment against the invoice.
2. Open Transactions and look for the payment in transaction Drafts.
3. Add the appropriate income tax category.
4. Save the transaction to move it to Completed.

Once categorised, Sage updates your turnover and tax reporting.

The turnover figure should show the gross invoice value, before CIS deductions. HMRC requires you to report gross income. The CIS deduction is recorded separately as a tax credit against your future tax liability.

• CIS in Sage Sole Trader
• Create a CIS invoice in Sage Sole Trader
• Record a payment for a CIS invoice