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Offline Zak  
#1 Posted : 27 April 2015 22:18:14(UTC)

Rank: Newbie

Groups: Registered
Joined: 27/04/2015(UTC)
Posts: 1
Location: Essex


What is the correct date for credit of the CIS tax deducted from a sales invoice?

Lets say a builder client raises a sales invoice to a contractor and shows on the invoice details a breakdown of the invoice which shows a credit for the contractor is going to deduct CIS tax from the invoice payment.

Lets say the invoice is dated 31 March 2015 i.e. tax year 2014-15 for £100 gross labour and £20 CIS tax so net payable is £80.00.

The contractor then pays the net £80 on say 30 April 2015 i.e 2015-16 tax year.

What is the correct date and year for the CIS tax credit and is it the same for both contractor and subcontractor?

I would have thought the correct date for accounting for the CIS tax credit is the same for both contractor and subcontractor being 30 April 2015 which is month 1 (tax month to 5 May) 2015-16 in this example.

Therefore both contractor and subcontractor should make the accounting credit for the CIS tax deducted as at PAYMENT not date of the subcontractors invoice? Right?

Applying the CIS tax credit at the date of the invoice could lead to all sorts of problems as far as I can see and makes no sense at all?

Can anyone confirm with links if possible to HMRC guidance on this point whether correct date for CIS credit is date of invoice or date the invoice is paid?


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